Why & how to do cashless transactions matter

1. How do we solve these problems?
• The biggest reason for creation of black money is our political system where politicians borrow black money for fighting elections. After getting
elected, they have to pay to their debtors the amount back at least 2-3 times leading to cascading corruption at all levels. Congress & BJP spend
over Rs 35000 crores every year on elections and declare less than 0.001% donors so all the money is taken from mafia and is black money.
• In the last 16 years, over 2.50 lakhs farmers have committed suicide because their crops failed as majority had taken loans from local moneylenders
at exorbitant rates. What is the way out for all farmers to get a credit history and to avail at least 25% of their yearly income as loans without any
security and to prevent all such suicides?
• There are over 7 lakh villages in India and it is not viable to have bank branches in villages or ATMS everywhere. So what is the solution to make
sure that EVERY Indian gets a FREE bank account and also to get instant loans?
• Across India, majority of the crimes are money theft, robbery, ATM cash vans being looted, etc. and every family has encountered cash robbery.
How to ensure that people live peacefully without the fear of being robbed?
• We need to connect to the youth less than 35 years of age who constitute over 70% of the population who mostly believes that all politicians are
corrupt and thus over 20 crores such Indians will not vote. These youths given a choice will do every function on their cell phones and thus the
solution to engage them should be cell phone based.
• There are over 3.30 crores cases pending in various Indian courts. If we were to make all cases as FAST TRACK cases, we will need over 4 times
resources for creating courts, buildings, salaries etc. But there is no money with the governments to take such a step. Is there a way out which does
not incur any extra money yet people fast justice?
• Police are totally overworked in all states across India. Many a times they have work for 18 to 24 hours straight eating only vada pavs and no proper
residence. Their salaries are also very low and the pressure on them to solve cases is very high and so there is bound to be corruption, low
morale, and negligence frustrating people. Havaldars do not get promoted for 18 years and the central and state governments do not have any
money to TREBLE police force. And build infrastructure. How do we ensure that people get fast justice from police & without any government
investing any extra money?
• How do we ensure that every Indian voter votes & also takes important decisions of his area without making him move out of his home?

2. Let
us
make
India
the
No.1
nation
of
the
world
How INDIA can remove Corruption & Black Money, bring democracy in the hands of the people & also enable true
SWARAJ by using mobile phones for cashless transactions, taxes & voting

3. Average money spent
Amount that can during the elections by
be legitimately
each such serious
spend by a
candidate (in crores) is
No of serious
candidate as per actually about 20 times
candidates (1
election
the allowed limit, ignoring
each of UPA, NDA commission (in
the money spent by other Total money
No of seats & regional Party) lakhs)
candidates
spent (crores)
Lok Sabha
543
3
40
8
13032
Vidhan Sabha
3093
3
16
3.2
29692.8
Panchayat & municipal
seats
270000
3
3
0.6
funds spend on
elections by each % of money declared as received
1 of the 3 parties compared to the money used to fight
every year
elections
486000
528724.8
105744.96
Amount of funds received
every year as declared by
some of these parties
Congress
BJP
35,248
332 crores out of which mostly cash has been collected less than Rs 20000 and so the donor name
has not been mentioned and only donors name of Rs 17 crores have been shown
0.91%
170
0.05%
So obviously the balance money is coming from mafia, builders, corporates, etc. who will extract benefits at least 5-10 times the money parted by them as it
is give & take quid pro quo. They are given contracts in many tenders, rail, road, mining, building & repairing works, etc and thus do sub standard work

4. Problems due to black money
Since Independence, it is estimated that about 25% to 50% of the economy is BLACK MONEY (it is believed that
over Rs 90 lakh crores has been converted into black till date-4 times the national debt) and when all this becomes
white:
1. Taxes will improve significantly. inflation will come down dramatically. Central & state debt will be wiped off.
2. For every Rs 500 note, Govt is wasting about Rs 30-40 in its printing & transporting to banks & ATMs. There are huge counterfeit notes circulating
in the economy. Notes get soiled quickly.
3. Rupee rates will strengthen leading to better credit ratings & reduced cost of oil imports. Current account deficit will get reduced leading to lower
fiscal deficits which in turn will lower interest rates. It will boost jobs, business and economy multifold. The country’s cost of operation will get
reduced so even with low taxes, it will be able to run smoothly.
4. There will be no theft, no wallets, no ATMs, no burglary etc.
5. Corruption due to cash will be eliminated
6. Henceforth there will be no generation of black money in the country.
7. All hawala transactions will be eliminated
8. Indians will become richer by many times-India will no more be a poor country.

5. Prerequisites For Taking INDIA
Cashless
• Every Indian to hold 1 unique bank account, 1 unique mobile number both of which will be tightly connected with his
Aadhar number so that people do not have the option of running away after incurring expenses or loans and every
transaction gets done quickly.
• Just as mobile number portability is allowed, even the bank account number will be portable from 1 bank to another as &
when required.
• All Indians however young or old / poor or rich will have to provide details of the properties, gold, cash, assets, shares
etc. that he possesses 1 month before the country goes cashless. All the coins and Rupees will have to be submitted to
the banks where the value of these will be converted and reflect in his bank account balance.
• All benami assets or money not declared by Indians whether in India or overseas in Swiss banks will become the property
of the Indian government. India to sign bilateral treaty ( same like America has with Switzerland) with all countries and
immediately especially with tax haven countries ( e.g. Switzerland, Hong Kong etc) to get the detail of all assets ( cash,
immovable property etc) held in Indian citizens name, thus India will make sure that none of its citizen has illegal money
held out of country. The bilateral agreement should be so tight that any money held in any of their banks of people
having Indian passports if not reported to us will lead to a criminal breach of such treaty. Also India will revisit bilateral
Tax treaty (DTAA) signed with Mauritius to ensure that Mauritius is not used as a tax haven to avoid taxes in India. People
will have to pay taxes till that date as per the rates applicable. All income earned by all Indians thereafter will have to be
declared from known sources of income. This way especially the government servants thereafter cannot accumulate
income beyond their official salaries.
• The scheme will be launched by June 2016. The 2 year time frame is required to ensure that every Indian has only 1
mobile number, 1 bank account and 1 Aadhar card and that the 4G enabled USIM with supported smartphone is
compulsory for all and internet has penetrated across the nooks & corners of the country.

6. SMARTPHONE
Step 1. When the user has to transfer money
to anyone, he will click on the rupee
app, which will then take him to his bank’s
website.

7. SMARTPHONE
ENTER THE AMOUNT
YOU WANT TO
TRANSFER
OK
Step 2. After going to the bank’s website, it will ask
the person to enter the amount to be transferred.
For Example he types Rs.100 and then presses next
button.

8. SMARTPHONE
Step 3. Scan the barcode of the mobile number of
the person to whom the money has to be transferred
by clicking on the barcode icon from the transferor’s
mobile. This is to reduce the time taken to enter the
mobile number. Incase the barcode is not available
or when the person is far away we can enter the
mobile number manually and proceed with the
transaction.

9. SMARTPHONE
Verify Your Identity
Step 4. Now the bank will ask the transferor to
validate his identity by pressing his thumb on the
screen.

10. SMARTPHONE
TRANSACTION
COMPLETED
SUCESSFULLY.
SMS SENT TO
BUYER AND
THE SELLER.
Step 5. After validation of the thumbprint by the
Aadhar server & bank balance by the bank server,
the transaction will be completed by sending SMS’s
to the transferor & the transferee.

11. • In Case the cellphone is not working then the buyer can also use his chip debit card. The
swipe machine will be running on 4G USIM and in case electricity is not there it can also be
run on rechargeable batteries. This can be used by any street vendor also.
• Now if a person buys any product from a street vendor, the seller will swipe the debit card
and enter the total invoice amount & ask the buyer to enter his 6-digit pin to authenticate
the payment. SMS will be sent to the seller & buyer of the transaction done.
• This transaction though can be done is less secure compared to the mobile phone
transaction.

12. Prepaid Smart Card
• For very small monetary transactions from Rs.1-500
which a person may want his children below the age of
18 to do; the person may get it loaded like a prepaid
smart card. The card will display the person’s
name, photo & mobile number. In case lost or stolen, it
can be blocked & replaced with a duplicate card which
will have the actual balance at that time. carry the Even
here after the transaction is completed the SMS will be
sent to the buyer when his child buys anything.
• This is the least secure transaction compared to the
mobile or debit card method as it is not asking for any
thumb id or 6-digit pin.

14. Rs 30,126 crores will be saved every year by conducting elections using
mobile phones
• Amount of money lost per year due to holidays declared for elections (assuming 3 elections comprising of Lok
Sabha, Vidhan Sabha and Gram Panchayat) in a 5 year period is Rs 15000 crores (calculated @ Rs 200 per day
average per capita earnings of 120 crore Indians)
• The deposit of Rs 25000 is too less to be lost by frivolous candidates if he scores less than 16% of the votes polled.
It should be raised to Rs 2.5 lakhs and even the nominees should be increased from 10 to 20000 to reduce the
serious candidates to 5 or 6
• The cost of conducting elections must of another Rs 5000 crores every year including the salary cost of security
and staff, transportation etc.
• Assuming that 4 candidates in each constituency must be spending per day Rs 1000 for keeping atleast 10 staff
members for 10 days for each polling station to give voter slips to go a polling station, checking the authenticity of
voters and after that while votes counting, which works out to Rs 7.50 lakhs each and so the total cost of
unnecessary expenses during lok sabha elections (assuming each polling station has 1000 votes, he will need 1500
volunteers minimum assuming 15 lakh voters) =(Rs 1000 per day * 10 days* 1500 volunteers * 4 candidates)=Rs 6
crores
• And thus for 543 lok sabha seats=total avoidable expenses is Rs 3258 crores
• Vidhan Sabha seats: 3093 so total avoidable expenses is Rs 18558 crores (Rs 1000 per day * 10 days * 250
volunteers (1/6 of lok sabha as size is 1/6)*4 candidates=1 crores *3093=Rs 3093 crores
• Gram Panchayat & municipal election seats in India:270000 so the total avoidable expenses is Rs (Rs 1000 per day
* 10 days * 41 volunteers (1/6 of vidhan sabha as size is 1/6)*4 candidates=1 crores *270000=Rs 44280 crores
• So total avoidable election expenses in 5 years is Rs (15000*5 year + 5000*5 years+ 3258+ 3093+44280)=Rs
1,50,631 crores or Rs 30,126 crores every year

15. Benefits of using mobile phones for conducting elections
• It will reduce Rs 30,000 crores expenses every year thereby boosting economy
• It will ensure nearly 100% voting giving chances to good candidates to win elections as currently a lot of rich and educated
people do not want to vote for criminals who have entered politics
• Right to recall or right to reject will become very easy thereby boosting democracy and swaraj
• People can continue in their regular work and participation in day to day decision making will happen giving boost to better
usage of taxes collected helping in referendums
• It will eliminate chances of impersonated votes
• The cost of preparing and maintaining electoral rolls will get eliminated
Benefits of taking about 2% tax on every transaction

Within 1 year of going cashless, government will know how many transactions take place & thus how much tax can be levied on
every such transaction so that the total taxable income of the state and central governments through all sources is compensated

The government will get taxes instantaneously helping it in better planning, execution and provisioning. Tax avoidance will become
zero improving tax receipts even at such low rates

Business entities which are not publicly listed will be spared from maintaining challans, filing tax returns, filing returns to ROC or
worrying about raids or any wrongdoing. The system will not allow the businessmen from becoming dishonest. The current cost of
accounting compliance is very high for keeping accountants and auditing accounts by CAs, CSs which will get eliminated thereby
lowering prices and boosting economy.

Since all the current taxes like Service tax, VAT, excise, income tax, profession tax, CST etc will be eliminated by having just 1
transaction tax (except custom duty), over 30 lac people employed in such departments in the central & state govts. can be moved
into the judiciary, police, education, healthcare departments (where there are severe shortages but the govts. are not able to
appoint people due to lack of money) thereby eliminating delays in giving justice and also improving public services. Not a single
person will lose his job and all the assets in such offices will be used for such purposes.

16. Thank you 
• Pankaj Bhargav Tel: 7738766664
• Please send your feedback at
• letslead@gmail.com OR https://www.facebook.com/cashlesstransfer
• Let us make India the No.1 nation of the world by bringing the above changes
• Please tell your friends also to join the above campaign to free India of corruption, poverty and inflation.
• Jai Hind