Why was there a need for e-rupee?

1 You all know that in the present system, the RBI must get the currency notes printed equal to the money in the market. This printing process involves significant expenses, including the high cost of currency notes, printing, security, and logistics for distributing them to banks. Gradually, this currency is required to follow the same course due to the destruction of existing notes for various reasons. But after the introduction of the e rupee, this cost will gradually and drastically be reduced.

2 The currency notes are highly exposed to crime, such as burglary, loot, loss, etc., but the rupee will be quite safe.

3 The currency notes are stored by big giants in the form of black money. Money laundering is also driven by black money, but after the introduction of the e-rupee, there will be no way to keep black money in the form of high-value notes. There will be no chance or fear of forged currency notes. Every penny will be accounted for and in circulation, which will cause a big boom in our economy.

4 Earlier, various subsidies were used to pay through various agencies. As a result of corruption, the subsidy amount in the hands of beneficiaries was much lower than the amount actually paid by the government. To prevent this leakage and corruption, the government launched Aadhaar and linked account systems, directly transferring funds into beneficiary accounts. Although the problem of leakage was greatly reduced, there are still issues with the misuse of subsidy funds in the form of currency notes. The corrupt persons in the system are still involved and continue their activities through cash bribes. With the introduction of the e-rupee, this bribery system will be checked in the form of currency notes.

While currency notes are used for black money and bribes, there is another misuse of currency notes. Presently, the subsidy is directly credited to the beneficiary’s bank account. These subsidies are given to promote a particular activity. Sometimes it is given to purchase fertilisers, sometimes to extend irrigation facilities, or to purchase machinery or good seed. In most cases, people do not use this subsidy for its intended purpose and spend it on marriage, house extensions, or even liquor. It ultimately results in poor achievement of decided projects. But after the introduction of the rupee subsidy given in the form of a voucher, it shall have to be consumed for the specific purpose only. It will facilitate achieving national priority missions to a greater level.

The above positive effects are indicative, and there may be additional benefits of e-rupee in our economy and trade. But at the same time, there may be a few challenges in implementing e rupee nationwide, which may arise before, during, or after the study and experience of the e rupee pilot project. These may be

1 Acceptance by the public.

2 execution problems by illiterate citizens.

3 Development of adequate infrastructure in the country.

4 Time period required to achieve full implementation of e-Rupee nationwide.

5 possibilities of increased cybercrimes.

Time will tell whether the e-rupee story succeeds. But I can say that it is a revolutionary initiative of the government. It is a step that shows the firmness and vision of the government in building a New India. If things go well, we shall enter an entirely new era of honesty and progress. A national character will emerge where all the sources will be utilised for the nation-building. There shall be no space for black money and tax evasion. The undue luxuries funded by black money will be curbed, election expenses will be controlled, resulting in improved quality of leadership in politics, and finally, we shall be able to achieve our GDPI targets easily.

What is needed is to raise public awareness, educate them on the procedures before implementation, and avoid any surprises, as usual. Congratulations to the Prime Minister and his team for a revolutionary vision and action. Someone rightly said Modi ji Hein to Mum kin hei.

The post A PATH TO BUILD NAYA BHARAT – E RUPEE- A REVOLUTIONARY INITIATIVE (7) appeared first on Tiranga Speaks.