Demonetisation_ modi govt is betting its future on digital india. will it bear good results_ – times of india

Soon after Finance Minister Arun Jaitley announced a raft of discounts and freebies to promote digital transactions last week, one of the twitter feeds read: ‘the finance ministry is sounding more like an e-commerce salesman.’ The promotional offer, which is less attractive than the ones thrown by e-commerce firms, is like a coin with two sides depending on which side you look at – either the government is desperately shifting the narrative to digitisation from black money, or this is the game plan to ensure that future black money growth is arrested. High profit products to sell “Goal post is shifting, it is no longer about black money, now they have found a new one called cashless economy,” says former finance minister P Chidambaram.

But given the government actions, it appears unlikely that it is going to even rewind its moves partly though it may amend, or fine tune measures to ensure that people use less of cash and depend more on electronic payments. Low investment high profit business in bangalore Can a country where even top bank chief executives use wads of cash to pay for their expenses, make a shift towards digital given high illiteracy, poor internet penetration, absence of banking services and a penchant for tax evasion by traders and purchasers alike?

While the focus has been on the amount of Rs 500 and Rs 1,000 currency notes that would not be deposited in banks, the broader picture stays that of squeezing cash supply in the system and ensuring that merchants and businesses keep an electronic record of all transactions making tax evasion next to impossible. Low investment and high profit business “How again another cycle of unaccounted wealth will not be created? It has to be to get greater digital money, greater online, digital tracking using all the tools of big data — you have to try to prevent accumulation in unwanted places,” says KV Kamath, ex-CEO of ICICI Bank. High profit margin industries “It is not difficult to do that.

High profit items to sell Digital money gives you the ability to track that.”

Till now one of the biggest obstacles to digitisation has been the government itself which encouraged a lot of cash payments and the heavy charges that prevented people from using it, and not necessarily to evade taxes. High profit shares Merchant discount rate, or the price that merchants are supposed to pay to banks for card payments, is often passed on to the consumers who end up paying 2% extra for card payments.

Minister Jaitley on November 24 soon after appealing to bank CEOs to be on mission mode to expand digital banking said, “Contrary to perception that adoption of digital mode will be a far cry, this is a change that is already happening in the country. High profit crafts They (banks) need to use this opportunity to further capitalise on this change. Low cost high profit business They (banks) should see this as a business opportunity.”

The government included even some private establishments to encourage its idea of digital economy. Low cost high profit shares Banks were asked to waive off MDR on debit cards and also do away with charges on withdrawing cash from ATMs of other banks. Small business with high profit margin in india Moving to electronic transaction will bring transparency and weed out corruption. Low investment high profit business in kerala “This will also help future transactions to be substantially digital and once they are substantially digital they get caught in the tax net,” Jaitley said on Tuesday.

The government should put its money where its mouth is. High profit agriculture business in india Majority of online transactions with the government attract a convenience fee which is the reverse of what the government is talking about regarding digital payments. Businesses with high profit margins Even as the finance minister announced that the railways would be giving discounts for electronic payments, Central Railways continued to levy a surcharge on every card transaction. Low value high profit shares It is only recently that the Railways under pressure from the government has ordered for around 15,000 terminals for card transactions at its booking counters from ICICI Bank and State Bank of India.

Prime Minister Modi’s shock treatment has invited criticism that citizens are put to enormous hardships to push his pet project. Business with less investment and high profit But a peek into the history shows that governments across the world are forced to take harsh steps to achieve a particular objective, including India’s own devaluation of the currency in 1991 by the then FM Manmohan Singh which took more than a quarter to overcome the resulting currency crisis.

Recent developments may show countries like Greece forcing its citizens to stand in queues to get their own money, there are instances where even the US had to resort to ban withdrawals from banks and order its citizens to deposit their gold to restore normalcy. Profit margin high or low President Franklin Roosevelt in 1933 ordered a ‘bank holiday’ for a few days and extended it for an indefinite period.

Furthermore, he prohibited gold ownership beyond a limit and ordered they be surrendered at treasury by citizens or they face a jail term. Low capital high profit business ideas While Modi may be seeking 50 days to showcase the impact of his demonetisation drive, what is quite visible is the pain and agony of people which the Chief Minister of Bengal Mamata Banerjee and her Delhi counterpart Arvind Kejriwal point out. Retail business with high profit margin “That’s typical of our country,” says Romesh Sobti, chief executive at IndusInd Bank. Low investment high profit business ideas in india “If you didn’t do anything, you will be perpetually blamed for not doing anything, and if you do anything, you could have done better.”

Any shopper faces this question: Do you want a bill? If so, pay 10% more. Retail products with high profit margins Then the instant answer is, no, thank you. High profit business with low investment That not only helps buyer avoid tax, but also the seller. High profit business india The amount of tax evasion is so high that nearly 40% of medical stores are not even registered. Low budget high profit business in india “The biggest impediment to cashless is that people don’t want to show higher sales in their books,” said Dipak Gupta, joint managing director, Kotak Mahindra Bank.

“The problem of the merchant is if you were showing a sale of Rs 100 last year, you don’t want to show your entire Rs 250 sale in white this year. High profit low cost business So while digital or plastic can happen very fast, there is a mental impediment towards its impact.” There is a whole chain of tax avoidance that will be broken if payments are captured in the formal system. Business with high profit in india The only way to bring these tax avoiders to the digital platform is through a combination of incentives for electronic, disincentives for cash and stronger tax administration.

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