Today’s headlines in the TOI is that Rs. 167,000 crores worth of fake money is in circulation, out of which only Rs.63 crores has been seized.
I first advocated money in demat form on 9th January, 2009 and again on Fake money on 2nd March, on my blog. There is no way money fake money can be seized in a more sizeable quantum, even if the whole Indian police get after this single pursuit. Counterfeiting technologies would continue to improve. So much so, that it would soon be possible print a year’s hard earned money in a day at home. The only way forward is ; demonetize and limit.
What’s the need for the Rs.500 or Rs.1000 notes to exist in the first place for anbybody who is honest? Income Tax doesn’t recognize any expenditure above Rs.20000 incurred in cash as tenable. Then who needs all this paper money. You guessed it right; the babus, the politicians, the dishonest businessmen, and the terrorists – and I deliberately say this in the same breath. The babus and politicians can’t take bribe in cash from dishonest businessmen and the terrorists can’t be funded by the bankrupt Pakistan with real money.
The home printing of money will carry on, till such time there is a blanket ban on any transaction above Rs.10000, or anybody found hoarding more than Rs.10 lakh in cash to be charged with a criminal offence. Chances are that the government won’t do anything. So I am thankful to that gas station attendant who simply refused to take the Rs.1000 note from me last week.
Public would make paper money as extinct as the pager. And people would do it. Babus, you like it or not!