I am in US these days at my company's duty. I am always keen to find out why most US people are materialistically happy and most Indians in scarce. There are certainly many visitble reasons like...strict laws, honesty, courtesy. One of the most important reasons for their prosperity seems to be unavailability of big notes here, and negligible amount of cash transactions. The largest amount of cash I could see here was $50 and that too was with me :)
If we compare this with India..it seems 500 Rs note nowadays is becoming the lowest denomination note the way its circulated. With this comes to my mind, Ramdev Swamiji's advice to Indian govt. about banning notes of denominations above rupees 100.
Also, currency circulation should be transformed in banking transactions so that surplus currency may be ordinary paper for all practical purposes. All sales and purchases exceeding say Rs 20000, even though payment may be made in parts, must be through banks. In case of cash payments, currency tax at the rate of 30 per cent may be imposed. All expenses exceeding Rs 1000 must be allowed when made through cheques or drafts.
Payments of essential services like water, telephone, electricity and municipal taxes for bills exceeding Rs 1000 must be by cheques or drafts only. Cash withdrawals from a bank account in a single day exceeding Rs 20000 may not be generally allowed and should be reported to IT department.
Drafts, Pay Orders and Traveller cheques must carry names and address or account numbers of purchasers with reduced validity period of say 45 days to check their misuse as ‘benami’ drafts for carriers of black money. With tax rates drastically reduced now at global level, it is rather in interest of business persons to do away with under table deals.
Currency related crimes includes robberies and other anti-national activities like fake currency, bribes, circulation of unaccounted and black money etc. Since higher denomination currency Currency circulation has been of charm now mainly to bribe takers, which reportedly include even persons on high posts, being perhaps the only reason to continue with menace of unnecessary inflow of surplus currency in our economic system!
Let's hope Manmohan Singh could gather the strength to accept Baba Ramdev's great piece of advice.