Cashless Society/Economy

Cashless Society/Economy

Introduction

A cashless society describes an economic state whereby all the financial transactions are done using cards or digital means. The circulation of physical currency is minimal.

Such a concept has been discussed widely, particularly because the world is experiencing a rapid and increasing use of digital methods of recording, managing, and exchanging money in commerce, investment and daily life in many parts of the world, and transactions which would historically have been undertaken with cash are often now undertaken electronically. Some countries now set limits on transaction sand transaction values for which non-electronic payment may be legally used.

How Can We Do This?

We might think how a cashless economy is possible when money is the major source to run day to day life. Well, such an economy might have been a bad dream if it was planned to be implemented a century ago.

We are now living in a world where Internet has taken over every place. Wherever we go, we carry our Debit Cards and Credit Cards. If we were to apply the concept of Cashless Economy keeping in mind the age old practice of seeing Money as a paper, may be the cashless economy would sound like a pointless scheme. But when we think of such an economy with the appliance of today’s technology where no liquid money is used, the whole idea of Cashless Economy can be understood.

Advantages of Cashless Economy

A cashless economy will allow less tension of tackling a wallet full of notes along with us, which is not at all safe in a world full of anti-socials. We can rather use our mobiles as a one stop solution for all kinds of transactions such as bill payments, fees payments, funds transfer, recharge etc.

Crime rates will be diminished due to cash ban as most of the terrorist activities are funded with black money. In addition to this, other crimes such as burglary, extortion, bank robbery etc. will also decline.

One of the biggest advantages is the increase in the span of the income tax.

Conclusion

Above all, the cashless economy will lead to the most convenient and secure economy for all. In short, a cashless economy can only be possible with sufficient infrastructure and planning that are required for supporting an economy like India.

The Two-Child Rule for Population Control

The Two-Child Rule for Population Control

It is true to a certain extent that population does put pressure on limited resources. Employment is just not possible to create for such large numbers. So, to that extent even poverty is an outgrowth of unchecked population growth. At the same time, the tendency to have a large family is also a consequence of poverty.

The problem with the decision to impose the two child norm is that it has not taken into consideration several factors that impinge on the population issue. Why impose it only on prospective members of Panchayati Raj and then only on candidates for political posts?

Children covered in dust, with runny noses and matted hair, begging at street corners or playing and lolling about at construction sites, overcrowded schools, traffic jams, slums, shortage of water, electricity and other amenities, environmental degradation, indeed, any failure of the infrastructure and we attribute it to growing population.

Why do the poor tend to have more children? Expert opinion has it that the poor do not know how many of their children will survive. Nor the poor well aware of the contraception methods or how to avail of them, at the root of our burgeoning population is the indifferent, if not non-existent, health care services, neither material nor child health care has got the importance it deserves in the country.

Besides the health and education infrastructure, the cultural traditions of this country have deep roots and in that culture the son has a place that is very difficult to dislodge.

The son is seen, even in the light of increasing evidence to the contrary in today’s social situation, as the provider for old age. More deep-rooted is the conviction, at least among Hindus, that the last rites must be performed by the son in order that one may gain ‘moksha’.

Deep rooted beliefs may be prejudices, have never been tackled with the reformist zeal they require. The ability to think independently and fearlessly, the spirit of questioning that is basic to positive social change and the courage to act against the mediocre tide are not encouraged; in fact they are suppressed in men and women alike. In the circumstances, the desire for a son is almost universal.

A compulsion to limit the family has resulted, even among the so-called educated middle classes, in female infanticide and foeticide. Technology-the ultrasound facility-is unscrupulously used to identify the gender of the unborn child and kill it off if it is female. This is specially, so if the firstborn is a girl. Two children are ideal, but one, at least must be a son.

It is easily seen that China, besides its totalitarian system, also has a good health care system in place. So, do most developing countries that have achieved a modicum of success in limiting population growth. Nor has education, the other important impetus behind limiting family size, been spread to all sections of the country’s population. It is the combined effect of education and health care security that will make people aware of the benefits of a small family. Changes in population numbers take place over time. The change can be speeded up with better education, widespread and prompt delivery of health care services and constant efforts at building up an awareness of religious superstition which had best be left aside.

Demonetisation

Demonetisation

Introduction

Demonetisation is the act of removing a currency unit of its status as legal money. Demonetisation is necessary whenever there is a change of national currency. The old unit of currency must be retired and replaced with a new currency unit.

Reason of Demonetisation

There are multiple reasons why nations demonetise their local units of currency. Some reasons include combating inflation, to combat corruption, and to discourage a cash system. The process of demonetisation involves either introducing new notes or coins of the same currency or completely replacing the old currency with new currency.

History of Demonetisation

In 2016, the Indian government decided to demonetise the 500 and 1000 rupee notes, the two biggest denomination notes. These notes accounted for 86% of the country’s cash supply. The government’s goal was to eradicate counterfeit currency, fight tax evasion, eliminate black money gotten from money laundering and terrorist financing activities, and provide a cashless economy.

In 2015, the Zimbabwean government demonetized the Zimbabwean dollar as a way to combat the country’s hyperinflation that was recorded at 231,000,000%. Fiji, Singapore and Philippines were other countries to have opted for currency demonetisation.

Another example of demonetisation occurred when the nations of the European Monetary Union adopted the euro in 2002. In order to switch to the euro, authorities first fixed exchange rates for the varied national currencies into Euros. When the euro was introduced, the old national currencies were demonetized. However, the old currencies remained convertible into Euros for a while so that a smooth transition through demonetisation would be assured.

Impacts of Demonetisation

It has major impact on corruption and also on financing of terror activities. It also will curb the menace of black money and will help check storing of funds to a large extent.

Conclusion

The demonetisation always affects some extent to the general public, but for larger interest of the country, such decisions are inevitable. Also it may not curb black money fully, but definitely it has major impact in curbing black money to large extent.