Less Cash Execution Blunder
One finds that all the small shop keepers are still trading only in cash, even if their daily turnover is few lakhs of Rupees, and the customers are happily paying in cash. AND THAT IS THE CASE IN ALMOST ALL CITIES WITH A POPULATION OF 25 LAKHS AND MORE.
If one analyses, one finds the simple reason for the same, resulted due to major blunder in policy.
If the transactions should be more using debit/credit cards and less using cash, then there must be some incentive for traders and their customers for doing so.
Instead, one finds a reverse incentive.
If one trades in cash, one pays the value. If one uses debit/credit card, then one pays an extra amount.
Typical idiotic thinking of government machinery.
If Less Cash Transactions are to be promoted, then the Price+GST amounts to be charges for selling any item through debit /credit cards MUST BE LESSER than the same item being sold against cash. AND THAT MUST BE THE CASE IN ALL CITIES WITH A POPULATION OF 25 LAKHS AND MORE (or some population, as seen suitable by the department).
Only in Rural area, where debit/credit cards are not available with all, such rule could be relaxed to some extent, and for some specific time period.
Major Advantage shall be as follows : If an item is available cheap with debit/credit card, then customers shall be inclined to buy them with debit/credit cards. Traders, who are not taking interest in getting the swiping machine for such cards, shall get seriously affected, and hence shall be forced to get them installed.
If I can think of this, there may be thousand others who can. Just wonder, why such idea never struck to anyone working in government machinery, especially those working for one or the other tax related matters. more