Digital India: Eroding Corruption From Every Bank
As the government completes two years of Digital India campaign, BW Businessworld takes a glance at the journey of the economy transforming into a digital space step by step
Digital India - shutterstock_193919333
Stone by stone, the water draws closer to the crow. The thirsty crow has objective, strategy and technique to quench his desired thirst. Similarly, step by step the government draws closer to evading corruption from the populated state of India by ensuring the economy marches towards digitization. As Rajiv Pratap Rudy said, “Integrity and honesty have come to be associated with this government.”
Having all the transactions on digital platform assures accountability and ensures the end consumer reaps the benefits. The Jan Dhan Yojana has massively multiplied the number of bank accounts across the country. This scheme has ensured that households at the bottom of the food chain too get proper benefits of the numerous schemes. By the end of June, there were approximately 28 crore beneficiaries of PMJDY with RuPay debit cards. But, till the time every individual doesn’t own a bank account, the dream of a digital friendly economy cannot be achieved.
The Direct Benefit Transfer (DBT) mechanism that began in 2013 under UPA but was substantially uplifted by the Modi government has linked numerous schemes together saving huge costs. According to government figures, savings due to DBT over the last three years have touched Rs 50,000 crore as on December 31, 2016.
The total payout at the end of June is said to have touched Rs 2 lakh crore.
The major schemes on DBT platform are Pradhan Mantri Ujjwala Yojana, Atal Pension Yojana, PM Suraksha Bima Yojana, and PM Crop Insurance Scheme among others.
To ensure that the bank accounts are actually utilized, the government implemented the policy of Demonetization that forced every individual of the country in the premises of a bank. The immediate objective of Demonetization was to flush out the hoards of black money while the long term objective was debated to be the conversion of cash-based economy into a digital one.
Consequently, it is estimated that at least 95 per cent of the demonetised Rs 15.44 lakh crore has already returned to the banking system.
And, lastly the newly launched Goods and Services Tax (GST) has locked the retailers, manufacturers and wholesalers. It would be hard even for the kirana traders to evade tax. Wherever there is a chain of supply, the online filling system would catch it. As the fragmentation of taxes end, the registration of all the traders and the unified tax rate would ensure further accountability across the sectors.
The government is focusing at different levels of the pyramid where digitization can be achieved, spreading its wings over the rural and urban ecosystem. But it should be careful not to do much, too soon. After all, the crow satisfies his thirst and ensures the stones don’t overflow the water.