Cashless Me.

Mr Narendra Modi, the Prime Minister of India, would like me to believe that I should feel rich without a penny because living that for some time will help the nation fight a battle against a malpractice. Living that for a few days will help the next generation Indians evolve as a more respectable world community.

Before you jump the gun, I am not a Leftist. I am also not one of those middle-class people who holds a grouse against people reeking with money. I am not too a citizen who wants to either campaign for or against a political ideology.

I wish to simply share as a citizen of India the way I have seen, lived and understood it.

In my small hometown that is now a district, cash is the only way you pay or earn. They, until six months ago, when I last visited, did not trust a cheque as it might bounce and the pain of its recovery is an avoidable add-on burden in an already neck to neck daily fight for survival of the most.

In fact, I have a long list of bounced cheques in my own professional career that I could not take to the Courts so long as the payee was a valuable client, or because I succumbed to the emotional side of their story or a strong recommendation by a third party made me postpone the legal process. Such cases are also used as a way for extra profits by several business owners - big, small or medium. So a cheque in India is trusted once it gets credited to your account, that is, the cheque converts into cash.

An online transaction is never an across the counter solution. Credit card machines are not pocket-friendly either.

Credit? I do not think any organisation honours that as a matter of norms.

So think about the largest commercial regime in India. Locally called the galla, better understood as the wholesale and large retail trade market.

The galla centres would be typically located in the Metros supporting several million smaller traders regionally. Normally, the smaller trader makes a periodic visit to the most competitive galla where they purchase in bulk based on the current trends, market needs and prices. As a result, they do not patronise an individual vendor. You may ask how the buyer carries so much cash. Well, there is an existing cash supply chain for a fee who deliver cash at the desired destinations. And most such traders patronise the cash exchange of their choice. They will be challenged by regulations. However, business needs feed innovations. So it is uncertain if cashless will replace only cash or only cash will keep finding its space despite cashless trending.

Transactional cash is not replaceable. Cashless may exist, minimally, partially or substantially but not wholly anywhere in the world. Bargain is an age-old practice. And, cash on the table buys the best bargain.

You cannot dilute the value of best bargains against hard cash in New York or London even today. Pay a cabbie cash in Manhattan, you may get a discount!

Those who are spreading an information that the more evolved economies are cashless, I dare make you hear you are rumour mongering. Go and see how Chinese buy condominiums in Manhattan.

Cash in itself cannot be a sin. Nor dealing in cash a malpractice. It is not honouring credit that is a crime.

Manipulating cash or currency is a crime. And the law must act against manipulation of cash or the currency. Despite the fact that no law can abolish manipulation, cheating, crimes or the wrongdoing, creditworthiness is a culture that can help economics, commerce, industry and trade evolve better.

Societies across ages, over time and across territories will have the wrongdoers. Now and perhaps forever. Some may have less, some more and will be some genetically so. Yet it is a society that respects and honours words and credit for dues will take the next generation ahead.

As I see today, there are a dozen currency peddlers on the streets willing to give you the valid currency notes for a price against those that have been abandoned. There are a number of people willing to stand in the queues for a price, to deposit or withdraw. There are a few people offering to take Self cheques against cash for a price. I do not know but that just may make a collusion with the bankers a quick buck making machine.

If I see this every day over the past week near my home or in the neighbourhood of my office, I do not believe that there is a law in place that will wipe out black marketing of currency notes in India. As India is several, several times bigger than my individual territory.

I do not wish to take an economist's viewpoint as I am not. If it has the fiscal sense that will help India economically, I will not contest, as a Government policy that the experts vet must be accepted and encouraged as an honest citizen.

If you tell me however that it will change the way cash is used in India or curb malpractices, I will contest that. If cash exists, it is the most potent currency for the best bargain. If trade and commerce exist, malpractices at best can be contained by intelligent or strategic decisions.

More, if I see Indians using their personal help taking the pains to transact cash at banks for their masters, I do not think India has matured to be a respectable world community.

I would now like to see how cash is used and how potent the INR is when the economic life in India gets back to normal.