Cash Redundancy

 





20^th century has given birth to a new world which appears to be real but it’s not actually. All the essential components of real world are there which can be seen/observed but it’s intangible.

This is called Virtual World. This century has another contribution to the world which has shortened the distance between two people not physically but virtually.

And this has been possible because of the availability of mobile phones and Internet connections.

Currently, India has ranked  2nd in the world by the no of mobile phone in use. The figure is around 752 million which is growing by 15 million per month. With this growing mobile phone usage other organization like bank or other companies have started accommodating this new means. Online trading is already  there in place,  now a new trend of mobile-trading is gradually making progress.

In mobile trading there is a concept called Mobile Money Transfer Identifier (MMID) which is formulated by MPFI and adopted by NPCI and participating banks. It takes care of linking multiple accounts to a mobile, ensuring only people who are registered for receiving will receive money and avoids erroneous transfers to a large extent. Mobile phone user will have to download the mobile banking application on his instrument to remit money.

This is process will usher in lot of new concepts as well as fast and smooth transfer of money. All ready big players like AXIS, ICICI, HDFC and SBI have enabled the service to transfer money into another account. It’s not so far when a vegetable vender will display his mobile number and MMID and you will be able to transfer the required amount to his account at the same time payer and payee will be confirmed by a automatic SMS. So the money will change hands virtually rather than physically making the cash redundant.

In 21st century, every child will get a mobile and a MMID as soon as he is familiar with money or when his father has a feeling of his need. This mobile will be that child’s power of purchase for rest of the life.  The original or the ancient form of trade was barter;  the direct exchange of goods and services. Later one side of the barter were the metals, precious metals (poles, coins), bill, paper money. Like barter or gold coin, one day, paper money will be read in history as virtual trading will eclipse the hand-to-hand cash transfer.

Those who use Debit or credit card can envisage such scenario more clearly. They get their salary credited automatically in the bank account at the month-end. Without having withdrawn any cash from the bank they use to spend money using debit card. Now-a-days, even small shops have started accepting debit card payment. Be it a cricket match, matinee show, restaurant table or  current bill, mobile bill one can avail all this facilities with the help of internet connection in PC or Mobile handset. At this ground it’s not hard to think the day of mobile-to-mobile money transfer without any liquid cash in hand.

Money is just a medium of exchange; It does not matter to us whether it’s  real or virtual. This redundancy not only makes paper note unneeded or useless, it will save lot of Government’s expenditures like manufacturing cost of paper note/coins, vigilance and security expenditure on counterfeiting or black money. Moreover it will be easy to keep check on tax evasion and black money.