Saturday, December 30, 2017

Saturday, September 16, 2017

Financial Digitisation

Post Demonetization it is seen that govt. is emphasizing more and more on digital payments.Recently there has been a push from central govt. on making mandatory linking of aadhar to bank accounts.Also the central govt. is using this digital space for its welfare schemes as well to reduce corruption and leakages . There is no doubt that use of this digital space will increase the effectiveness of these programs and will ensure the transfer of benefits directly to the beneficiaries. The economic aspect of fiscal digitization will surely benefit the economy.
But looking at another aspect of it a question arises that Are we taking a Parochialism view on the issue? Clearly we can say that rise in digital transaction is not behaviorally induced within people. It is mainly due to policies of govt. and effect of demonetisation that lead to this coercive transition .Surely, The use of this electronic highway for transactions have transformed our financial outlook to a great extent. It has not only improved govt. efficiency to deliver welfare schemes but also helped in curbing tax evasion. Also it can ensure routinely transfer of payments to beneficiaries of various schemes such as MGNREGA and SSP. Still inflicting the use of this electronic highway by govt. is questioned by various laureates who argue that it doesn’t seem in compliance with individual rights and autonomy.
However,whether or not it is in compliance with individual rights, it can help in addressing bigger issues like poverty and malnutrition.But its not only rights various other issues concerns this digital infrastructure such as
  1. Increasing Cases of Frauds and Cyber attack.
  2. Lack of Knowledge about it among citizens
  3. Lack of awareness of its benefits among citizens.
  4. Absence of robust digital infrastructure to serve this large population.
  5. Absence of basic infrastructure such as electrcity.
Finally the government need to take measures to tackle these problems such as
  1. The government need to release data about how much it has benefited from this increase in digital transactions in terms of percentage of budgets and how much of it has been spent on various sector such has health, education, security.
2. Also, the govt. needs to launch awareness campaigns telling people about its benefits.
3. It need to build adequate digital infrastructure ensuring connectivity in remote areas as well as building support infrastructure ensuring adequate supply of electricity to these areas .
4. The govt. need to launch portal and programs in coordination with gram panchayats to teach people about making digital payments its security concerns i.e. what to do and what not to do. It will also enhance the security.
5. It also needs an robust cyber security system as well. So cooperating with countries like Israel can help in building and enhancing our cyber security system.
6. The RBI needs to cooperate with banks and also ensure that they provide adequate and quality services to their customers in digital domain.
7. Also the govt. will need a backup mechanism of transaction apart from digital space to deal with uncertainties like flood, earthquake and other disasters. So possibility of another means of transaction need not to be ruled out completely.
Overall this transition is questioned in variety of ways but still it has helped our economy and addressed various lacuna and problems prevailing for a longer course of time. With more appropriate investment and usage of it we can avail its benefits in long term and also address the macroscopic problems like corruption, poverty to a greater extent.

Wednesday, August 30, 2017

The Blue Whale Challenge, today's big question

Deadly Blue Whale Challange is presently rocking news every day. It is being linked with teenage suicides in many countries like Russia (where the number is highest), India, Europe and now in the USA as well.

It is an 'Internet/Social Media' based game. The task is assigned to each player by a curator of the group. Initially, it begins with easy tasks like