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Letter to BS: Don't blame cash for all the ills in our financial system

It is common knowledge that large-scale tax evasion in India comes more from large businesses and corporates rather than from private individuals

Business Standard 

Black money

This refers to “Let’s stop making cash the villain” by Ajit Balakrishnan (January 3). The author deserves accolades for destroying a myth and playing the “devil's advocate” for cash. Cash is the most convenient and anonymous financial instrument. The current narratives against cash in India flows from a dubious belief that it lies at the root of black money, bribery, tax evasion, all of which lead to money laundering. It is not cash which gives rise to all these seemingly illegal practices, but it is the 24 X 7 election-dominated democratic system that forces business and corporates to generate to grease the wheels of democracy through the political machinery. In India, the basic purpose of promoting a cashless or “less-cash” society is to force citizens to leave behind trails or foot prints that can be used to chase the tax evaders and enable cherry picking depending upon the proclivity and whims of the political administration.

It is common knowledge that large-scale tax evasion in India comes more from large businesses and corporates rather than from private individuals. If that be so why should we curtail the liberties of innocent individuals and force them to go cashless, thereby enriching the fin-tech companies and such other intermediaries? After all, payment through electronic means is by no means cost free as it is made out to be. Look at the losses of prominent fin-tech companies and e-payment platforms in India. The solution lies in educating the society.

Ganga Narayan Rath Hyderabad

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First Published: Sun, January 05 2020. 22:45 IST
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