Sunday, 27 November 2016

Demonetization woes (9)

(via Sunny Narang)
 
There are three reports today in the Economic Times . All to be read carefully .

First Swadeshi Jagaran Manch will be looking deeply into ownership patterns of PayTM , the cashless evangelist funded among others by China . They are worried about Indian citizens data being accessible by Chinese . Is it OK it its accessible by US corporations or US funded start-ups ?

Then the mobile companies are losing 50% sales of mobile phones . And if people cannot buy mobile devices , how will they co cashless without a device ;-) So since now the Mobile Device is the Essential Tool to survive in the Cashless Yuga , then you MUST allow mobile-devices to be bought by any currency . Old or "Black" ;-)

And then the Rs.2.5 lac easy cash deposit will be looked at hard if a family of 4 deposits Rs.10 lacs !!!!

That means even an informal sector family that has a working capital need of 4 months of Rs. 10 lacs , meaning about a need of 2. 5 lacs of credit to clients a month (which is standard in most such businesses , talk to any artisan who trades !) , and with 2.5 lacs of sales , at most the family of 4 working earns at most 50,000-1.25 lacs a month, which is Rs.12,500-30,000 a month , and that also not all months in a year !


 Demonetisation is making all "Cash" sound "Black" . That has never been the case .

It is like a Traffic Light .

There is much "Black" like bribes , non-tax income , criminal income that is actually like the Red-Light .

Then there is all tax-paid , professionals , "White" which is like the Green Light .

Then there is that which is below the tax-radar , agriculture , informal where the family income is clubbed of many individuals and it is not regular through the year , but they have cash as working capital and other needs . It just rarely enters the bank .

That is like the Yellow Light . 


As we carry on the debates within and outside the Sangh Parivar , will take these two colours .

Is Global Money "Halal" where it concerns our Citizen's Big Data or "Haram" , especially Chinese ?

And is the lower-middle class/middle-class Rs. 10 lac cash hoarders the real "Black" criminals this country is looking for , or those whose assets are way higher ? 

And ultimately developing not a naive and illiterate version of Black-White , but a Red-Yellow-Green Cash economy .

And look deeply at the Processes of Transition , towards cashless , with empathy, sympathy and humility with the peoples of India .








Swadeshi Jagran Manch (SJM), which has been running a relentless campaign against the inflow of Chinese goods and investments in India for some time, has said it will now "study" the relationship between Paytm and Chinese online retailing giant Alibaba Group. 

"We have seen several reports about major Chinese stake in Paytm. Now that we are going for cashless transactions, we want to ensure the data shared by Indians is safe. No Indian company should be sharing data with foreign companies and the investment routes should be made very transparent," said Ashwani Mahajan, co-convener of SJM told ET. 

Alibaba Group's global managing director K Guru Gowrappan had joined the board of Paytm as an additional director late last month. Alibaba, along with its affiliate Alipay, is believed to own more than 40% of the Noida-based mobile payment service provider, and is expected to use Paytm as its prime vehicle to enter India .

"Depending on our findings we will reach out to the Centre. Make in India is not about goods alone. We are in talks with the government not to allow FDI in ecommerce. We want service providers to be completely Indian," Mahajan said. 

Meanwhile, Paytm Founder and Chief Executive Vijay Shekhar Sharma has told PTI that the payments and e-commerce platform is "as Indian as Maruti" and prides itself on being a representative of the "India story". 

RSS' economic wing in its annual congregation in Kurukshetra recently had decided to launch a year-long campaign against Chinese goods starting from January. 

"We are concerned about the misuses of data of millions of Indians. 

It is good that we are going for cashless transactions in a big way but the Centre must come up with its own ways to fund companies such as Paytm," Mahajan said. 





Indian handset makers have asked the government to allow consumers to buy mobile phones with the demonetised Rs 500 and Rs 1,000 notes for a month, as the industry faces a 50% drop in daily revenue that translates to Rs 175-200 crore. 

“The daily collection of our trade and industry, which should be Rs 350-400 crore, is down by 50%. The cash flow has got affected and it is having a domino effect on the distribution trade and now manufacturing,” the association added. 

“There is a Rs 2.5 lakh exemption but if you have split (the money) and four family members have each deposited this amount, then it will need to be seen,” said a government official. 

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