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How the Government can function with NO PERSONAL INCOME TAX NO CORPORATE TAX + gi v e 10% return on every commercial transaction for both BUYER & SELLER + have NO GST filing for most businesses + gi v e FREE MEDICAL INSURANCE FREE LIFE INSURANCE AUTOMATED RETURNS ON ALL COMMERCIAL TRANSACTIONS + ha have ve PE PERF RFEC ECT T TR TRAN ANSA SACT CTIO ION N TR TRAI AIL L & ACCOUNTABILITY
A NEW INDIA
FRAMEWORK FOR AN ECONOMIC SYSTEM THAT WILL HAVE ● PERF PERFEC ECT T ACCOU CCOUNT NTA ABILI BILIT TY ● TO TOT TAL EASE EASE OF ACC ACCEPT EPTANC ANCE ● AUT AUTOMA OMATED TED DIR DIREC ECT T BEN BENEF EFIT IT FOR ALL WITHIN THE COUNTRY
BHARATH BHIM A NATIONAL AUTOMATED FINANCIAL TRANSACTION & ACCOUNTING SYSTEM LINKED TO AADHAAR & THE EXISTING BHIM & UPI PLATFORMS
A Radical (Non) Taxation Proposal to Revolutionize Industry Mindset & Life in India
BHARATH BHIM WILL HAVE 3 COMPONENTS Indian National DIGITAL Fund (INDF) BHIM applications NSE-BHIM
1st COMPONENT Indian National DIGITAL Fund ● All Financial Financial Transactio Transactions ns done on the the BHIM multi-pla multi-platform tform applicatio applications ns (Web/Tablet/Phone/Debit/QR Cards) constitute the Indian National
DIGITAL Fund (INDF). ● INDF will give the precise precise Net Net Value Value & Transa Transactio ction n trail trail of of all Digital Digital Transactions happening within India. ● Eventually Eventually all transactio transactions ns are are expect expected ed to to become become Digital Digital and and INDF INDF will represent almost the entire financial transactions happening in the country. ● All Digital transactions happening in the country happen within INDF through banks, using BHIM applications on the existing UPI system.
2nd COMPONENT - BHIM applications ● BHIM BHIM appli applica catio tions ns will will be multimulti-pla platfo tform rm unifi unified ed appli applica catio tions ns Phone/Web/Debit Cards/QR Cards. ● A Unique Unique Bharath Bharath BHIM account linked to the Aadhaar of the Individual. ● There There wil willl be 3 type types s of of BHA BHARA RATH TH BHIM BHIM accoun accounts ts MyBHIM, C-BHIM, K-BHIM ● MyBHIM - (For the Individual) Individual) - will be a Personal Individual Account. Account. ● C-BHIM - (Commercial BHIM) - For Companies - Commercial transactions will be done through the company’s/proprietor’s C-BHIM C-BHIM accounts. accounts. ● K-BHIM - (Kisan BHIM) - Certified Farmer transactions will be done through K-BHIM accounts of farmers. ● MyB MyBHIM HIM + C-BHI C-BHIM/KM/K-BHI BHIM M can can be ther there e on the sam same e phone/Q phone/QR/Ma R/Magnet gnetic ic card.
3rd COMPONENT - NSE-BHIM ● The NSE BHIM BHIM component is composed of the value of the CREDIT available within BHIM. ● The Credit Credit avail availabl able e with within in the 3 BHIM BHIM accoun accounts ts is is segmented within a section called DD and the DD part of all accounts can be traded as a scrip - NSE BHIM ● NSE BHIM BHIM Scri Scrip p can can also also be be trade traded d in in the the Stock Stock Marke Markets ts either as a individual scrip or as a component of NIFTY & the growth of NSE BHIM will bringing proportionate return for all.
THE TRANSACTION SYSTEM After explaining the framework of the Transaction System, the THE PRACTICAL INCENTIVES & BENEFITS TO PEOPLE and the way CREDIT is routed TO MAKE MUTUALLY BENEFICIAL TRANSACTIONS between GOVERNMENT on one hand and CITIZENS & INDUSTRY on the other without the need for cumbersome TAXATION is explained
For all Commercial Commercial Transactions Transactions done through the BHIM applications (from buying things in small shops like chocolates, biscuits, bread, tea, coffee, provisions etc to making big business transactions)
Both the Maker and Receiver of the payment will instantly receive a credit of
10% each, for their transacted value, into their MyBHIM, C-BHIM or K-BHIM accounts. The transaction map to execute this is first explained & the way it is made practically possible is explained next.
The general transaction map Individual A can transact money to Individual B, using their respective MyBHIMs. However, person to person transactions dont get credit but will be eligible for a TAX FREE STATUS How this can be made possible is explained later
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The AADHAAR number can be the BHIM account number also.
● This This will will gre greatl atly y simp simplif lify y thin things gs and als also o prov provide ide simple, widespread accountability. So MyBHIM will function against the Aadhaar number All
C-BHIMs will be linked to an Aadhaar + GST No.
The BHIM Application Accounts All
MyBHIMs & K-BHIMs
will have 4 simple Sections with them DR, DD, MIA, LIA All
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C-BHIMs have 2 sections within - DR & DD
DR is a DIGITAL RUPEE Account, like a Wallet through which all
Day to Day transactions are done. ● DD is a Digital Credit Deposit Account - the Automated Tax Reversal & Credit Account into which Government credits go to. ● ●
So, all all day day to day day trans transact action ions s happen happen thro through ugh the DIGIT DIGITAL AL RUPEE RUPEE Acco Account unt of each individual & all credits received go into the DIGITAL DEPOSIT Account The other 2 accounts are explained later
How can the Government give 20% credit for all transactions through BHIM
Understanding where the 20% comes from ● All Financial transactions happening in India that come under GST (all slabs including 0% GST) will be the core of the BHARATH BHIM automated credit routing system. Generally all commercial transactions will fit into this. ● All Fina Financi ncial al trans transact action ions s that that do not not come come under under GST GST will will also also come come under the BHARATH BHIM as a favoured transaction mode, but will not be part of the credit routing process. So salaries will be paid through BHIM establishing perfect accountability but this transaction will not get credit as its not a GST item/transaction.
How can the Government give 20% credit for all transactions through BHIM ●
When a Commercial Financial Transaction is done through the BHIM application application -
● A uniform rate of 20% GST is proposed for all products but with an automated way to immediately return a credit value back to the BHIM accounts of the transactors. ● ANY ANY tran transa sact ctio ion n exec execut uted ed thr throu ough gh automatically have TAX FREE status.
BHI BHIM M
will will
How can the Government give 20% credit for all transactions through BHIM ● A Selle Sellerr sells sells an item item with with 20% GST GST and and insta instantl ntly y receiv receives es back back 10% 10% as credit into his DD in the BHIM application. The Buyer who buys this item also instantly receives 10% credit into his DD.
● The 10% + 10% 10% credi creditt that that is is now now avail availabl able e in the DD acco account unts s of the SELLER and BUYER is instantly, automatically & continuously available to the GOVERNMENT for GOVERNMENT for a period of 1 YEAR,, after which, the credit will be available as DIGITAL YEAR RUPEE to the SELLER & BUYER, for use within BHIM system and it automatically comes back into the DD accounts when further transactions are made and stays in the LOOP.
How can the Government give 20% credit for all transactions through BHIM ● So, Credit given to the TRANSACTORS TRANSACTORS for a 1 Year period is the the Credit available to the Government for Government for the 1 Year period. period. ● In addition to the credit returns, all transactions done on the BHIM platform will be TOTALLY TAX FREE - Free from Personal Income Tax & Corporate Tax. Tax. This wil ensure that industry itself will rush to implement this system.
● In short ~ 20% is the GST for all products sold in India (instead of the current 0%, 5%, 12%,18% and 28% ), if the transactions are done
through BHIM . ● When When the prod product uct is is sold sold throug through h the BHIM BHIM syst system, em, both both Sell Seller er & Buyer Buyer will each receive an AUTOMATED credit of 10% of the transacted value. ● Sinc Since e both both rece receiv ive e unif unifor orm m cre credi dit, t, BOTH will have an equal incentive to
use the BHIM system to transact. ● Since BOTH enjoy a COMPLETE TAX FREE STATUS on this BHIM transaction, it will definitely be their PREFERRED TRANSACTION
MODE. ● Since Since there there will will also also be be no need need for for furth further er GST GST filin filing g on thes these e transactions, as they are already clearly accountable, industry will also take it up instantly + government will also automatically benefit.
20% credit f or or all Commercial transactions done through BHIM ~ Explainer
DD - DIGITAL DEPOSIT ACCOUNT The Automated Tax Reversal & Credit Account
● All All Cred Credit it giv given en by by the the Gove Govern rnme ment nt to to the the BHIM BHIM accounts, go into the DD Account, through the automated process. ● The The Cred Credit it in the the DD acco accoun untt remains as credit within the Account for a 1 year period.
20% credit f or or all Commercial transactions done through BHIM ~ Explainer
DD - DIGITAL DEPOSIT ACCOUNT The Automated Tax Reversal & Credit Account
● Any Any amo amoun untt in the the DD acco accoun untt CANNOT be used directly by the individual/company/farmer for the period of 1 year. It will show as CREDIT available to them for the 1 year period. ● Th This is am amou ount nt can can be be used used by by the the Gov Gover ernm nmen entt for for that 1 year period.
20% credit f or or all Commercial transactions done through BHIM ~ Explainer
DD - DIGITAL DEPOSIT ACCOUNT The Automated Tax Reversal & Credit Account ● After After 1 year, year, the DD credit credit will will be be avail availabl able e to to the the individual/company/farmer as DIGITAL RUPEE for use within BHIM for all BHIM related transactions.
● When the DIGITAL RUPEES are used again, the credits keep going back into the DD for every transaction, for the next 1 year period.
● Thus Thus,, the the enti entire re mon money ey trans transac acti tion ons s in In Indi dia a FLOW within a beneficial accountable LOOP. ● Comp Compan anie ies s ca can n fo focu cus s on ru runn nnin ing g th thei eirr businesses well & in expanding & becoming global players instead of worrying about paying or avoiding TAX. ● Gove Govern rnme ment nt can ca n focu fo cus s on main ma inta tain inin ing g infrastructure & planning instead of going behind tax evaders
● So, the Government will not actually have to give the money back to the Individual for a period of 1 Year.
● Govern Governmen mentt will will have have the cre credit dit fro from m the the DD DD accou accounts nts of all Individuals/Companies/Farmers in India, at their disposal for use, as a LIVE FUND. FUND. ● Thus, 20% of all money transacted daily in India will be available to the Government for a full 1 year CREDIT PERIOD. ● Due to COMPLETE TAX FREE FREE status & additional CREDIT benefits, benefits , it will be adopted all over India easily.
● Abse Absenc nce e of of Per Perso sona nall Inc Incom ome e Tax Tax & Abs Absen ence ce of Corporate Income Tax for transacting through BHIM will in itself be a huge incentive for People & Companies to conduct their entire activities using BHIM. ● The The add addit itio iona nall bene benefi fitt of get getti ting ng 10% 10% bac back k for for each commercial transaction will be another unmatched benefit for both the Individual and the Companies.
SIMPLICITY OF TRANSACTING THROUGH BHIM ● ●
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People only need to carry a QR card/BHIM Debit card/Mobile phone for transacting. Shopkeepers only need to have a phone with them. Whatt can Wha can be sim simple plerr & more more ATT ATTRACT RACTIVE IVE to to a lay lay pers person on than than to go go to a shop and buy something for Rs.100 and immediately receive Rs.10 back into back into his account as credit? What can be simpler to the shopkeeper than to sell this item to the lay man and also receive Rs.10 R s.10 as credit into his account? If every transaction during the day instantly facilitates this for both, the system will be INSTANTLY accepted. Buy milk in a petty shop for Rs.20 receive Rs.2 as credit into the account. Shop selling same milk for Rs.20 also receives the same Rs.2 credit into their BHIM. Go to KFC and eat for Rs.1000, pay using BHIM and gets Rs.100 as credit into his BHIM immediately. KFC receives payment of Rs.1000 through BHIM and gets
SIMPLICITY OF TRANSACTING THROUGH BHIM ●
Go to a TV shop and buy a TV worth Rs.1Lakh using BHIM and receive Rs.10,000 as credit into BHIM immediately. TV shop sells the TV for Rs.1Lkh through BHIM and and receives Rs.10,000 as credit into BHIM immediately.
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Buy a BMW i8 for Rs.2.6crores and receive a credit of Rs.26Lakhs into the BHIM immediately. BMW showroom sells this i8 for Rs.2.6crores and receives a credit of Rs.26Lakhs into the BHIM immediately.
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Right now, if you buy a milk packet in a petty shop, you dont get anything back, but if you buy through BHIM for a month, you will get Rs.60 into your account, and the shopkeeper also receives Rs.60, both, simply for making this transaction through BHIM. The entire money given as credit is also available to the Government for a
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So, if you consider the below 4 transactions ~ ● ● ● ●
You buy You buy a pac packe kett of mil milk k from from a Pet Petty ty Sho Shop p for for Rs.2 Rs.20 0 ○ Bot Both h you you & Sel Seller ler rec receiv eive e an an autom automate ated d credi creditt of Rs. Rs.2 2 each each You Yo u go go to to KFC KFC an and d eat eat fo forr Rs. Rs.1, 1,00 000 0 ○ Bot Both h You You and the Out Outlet let rece receive ive Rs.1 Rs.100 00 each each as an aut automa omated ted cre credit dit.. You Yo u go to to an Ele Elect ctro roni nic c stor store e & Buy Buy a TV TV for for Rs.1 Rs.1La Lakh kh ○ Bot Both h You and and the the Store Store recei receive ve Rs.10 Rs.10,00 ,000 0 each each as an auto automat mated ed credi credit. t. You Yo u Buy Buy a BMW BMW i8 fo forr som some e Rs.2 Rs.2.6 .6cr cror ores es ○ Bot Both h You You & the the BMW sho showro wroom om rece receive ive Rs. Rs.26L 26Lakh akhs s as cre credit dit..
In these 4 transactions, Government receives Rs.52,20,204/- as credit available to them for a period of ONE FULL YEAR + The transactors will also have their credit returns which they will otherwise not receive through other modes of transactions so far + the entire transaction is TAX FREE in FREE in every way.
A Common Man
Uses MyBHIM to Buy a product From 20% common GST for all Products sold in India
A receives 10% automated credit on this transaction This 10% goes into the DD Account of A’s MyBHIM where it will show as available credit for 1 year
Both these 10%s or a total of 20% will be available for Government to use for 1 yea r
Since 20% of every transaction done in the country will thus be available automatically to the Govt., there is no need for Personal Income Tax, Corporate Tax
C, D, W, S Company / Dealer / Wholesaler / Manufacturer Sells to A using C-BHIM
Seller receives 10% automated credit on this transaction This 10% goes into the DD Account of C,D,W or Ss C-BHIM where it will show as available credit for 1 year
After 1 year the Credit in the DD becomes DR of A,C,D,W & S & the cycle repeats No Personal Tax, No Corporate Tax, Govt receives 20% of Each Transaction, Everybody receives automated DD credit, No GST filing, No Tax Filing ~
● Thus Thus,, Indi Indivi vidu dual als s & Com Compa pani nies es are are lik likel ely y to make all transactions through BHIM. ● BHIM BHIM base based d tran transa sact ctio ions ns will wi ll incr in crea ease se exponentially. ● Govern Governmen mentt will will have have 20% 20% of all transa transacti ctions ons for them to use for the whole year & this volume will only rise. ● Th The e cre credi ditt give given n back back afte afterr 1 yea year, r, wil willl agai again n come back into the credit loop for the government, in no time.
DD - BANK OVERDRAFTS & Personal Loans ● Banks should give ANNUAL Personal Loans Loans and Overdraft facility under facility under favourable terms, for the probable amount that can be available in the DD accounts. ● Thi This s w will ill be anothe anotherr addit additiona ionall bene benefit fit,, spec special ially ly for companies who can have large amounts of credit available in their DD accounts. ● Thi This s wi will ll also also be an an addit additiona ionall benef benefit it for for Bank Banks s as it will will also also be a SAFE LOAN directly linked to DD accounts. ● These These Loans Loans & O Over verdra drafts fts wil willl be given given only as DIGITA DIGITAL L RUPEES and its usage will of course return credit back to the DD accounts.
DD - NSE BHIM scrip ●
● ● ●
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The net value of all DD credits held in India can be traded in the FUTURES/OPTIONS segment of NSE as NSE BHIM. The value value of of DD cred credits its is is going going to go go up as as more more & more more people people tran transac sactt using BHIM. The NSE BHIM scrip BHIM scrip will gain value. In fact, fact, the the entir entire e value value of hol holdin dings gs in all all the the BHIM BHIM accoun accounts ts in in Ind India ia MyBHIM,, C-BHIM MyBHIM C-BHIM,, K-BHIM K-BHIM can can also be considered as the value of NSE BHIM. Alter Alterna nati tive vely ly,, we may may also also cons consid ider er tra tradi ding ng the the NSE BHIM BHIM as one of the permanent components of NIFTY. Trading NSE BHIM within BHIM within NIFTY will also give a solid boost to the value of NIFTY & it can strongly represent the vibrancy of our National Economy. It will will also also enabl enable e trader traders s to focu focus s on NIFTY NIFTY as as a visibl visible e dynami dynamic c nation national al index.
DD - NSE BHIM scrip ● Since Since the the valu value e of NSE BHIM BHIM is likel likely y to rise, rise, a propo proporti rtion onate ate return can be worked out to credit the DD accounts. ● So, the money money that that is is remain remainin ing g in the DD accou accounts nts should should also also fetch everyone some interest based on the NSE BHIM growth values. ● Like Like havin having g mo money ney in a fixe fixed d depos deposit it and and gain gaining ing interes interest, t, the the DDs should also give automated return at the end of a year, based on the value of NSE BHIM at the end of a financial year. ● So, the peop people le of Ind India, ia, spec special ially ly farme farmers, rs, will will also also have have anothe anotherr additional source of income just by transacting on BHIM.
To Sum Up ● ● ● ●
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20% 20% GST GST for for all all prod produc ucts ts sol sold d in Ind India ia thr throu ough gh BHI BHIM M Transa Transacti ction on throu through gh BHIM BHIM gives gives Tax Tax Free Free Status Status + zero zero or or minima minimall GST filin filing. g. Any Any indi indivi vidu dual al,, comp compan any, y, far farme mer, r, simply by making commercial transactions through BHIM, will receive 10% credit for every transaction. 20% value of all commercial transactions within the county will always be available to the Government for their Budget, to Rotate, as an automated process with minimal effort and without the trouble of tax filing etc. People People & busi busines nesses ses get get their their 10% 10% credi creditt as spend spending ing mone money y after after 1 year. year. Trader Traders s can trade trade the the NSE BHIM BHIM Scri Scrip p & money money trans transact acted ed thro through ugh BHIM, BHIM, in in this process, will also generate good income. All Trans Transact action ions s within within the the count country ry go thro through ugh a full fully y accoun accountab table, le, automated DIGITAL LOOP that benefits all. As of now, 50% of the daily economic activity is NOT EVEN ACCOUNTABLE and the TAX RECEIVED BY THE GOVERNMENT currently IS ONLY
TAX FREE NATION NO PERSONAL INCOME TAX NO CORPORATE TAX
In Tax Free India, if the GDP is worth $2Trillion, 20% of this value should be available to the government for its budget with minimal effort and hassle for anyone, which is more than the current budget & as a result of the ease of doing business, the economy will leapfrog
ADDITIONAL BENEFITS ON THE BHARATH BHIM
COMPLETE INSURANCE FOR ALL IN INDIA
As indicated earlier, the
MyBHIM
account also has within it 2 other sub-accounts ○ MIA - Medical Insurance Account ○ LIA - Life Insurance Account Government can provide Insurance to all Indians without spending a single Rupee
Credit routing for the MIA & LIA ● Every Every transa transacti ction on throug through h BHIM BHIM credit credits s 10% into into the DD account. ● The 10% should should first first be be route routed d throu through gh the the MIA MIA for for payin paying g the the Annual Medical Insurance Premium for a Basic Medical Insurance Plan. ● When When the MI Premi Premium um is is covere covered, d, furth further er DD DD credit credits s get get routed routed through the LIA to cover the Life Insurance Premium. ● After After both both the MI & LI LI premi premiums ums are are cove covered red,, all all furth further er cred credits its remain within the DD accounts. ● As a fur furthe therr incen incentiv tive, e, for for enco encoura uragin ging g peopl people e to tak take e up BHIM, the first year’s Premium can be given free.
Credit routing for the MIA & LIA ● Medical Insurance & Life Insurance can be serviced through the existing companies in the market. ● By work working ing out out a dea deall with with the these se com compa panie nies, s, the the Government can also use
the money available on all MIAs & LIAs in India for rotation. ● If anybo anybody dy wishe wishes, s, they they can can direc directly tly pay the the full full amount amount of both both the the Insurance Premiums through BHIM and immediately start their Insurance periods. This will permit the 10% credits from BHIM transactions to go directly into their DD account. ● People People can can also also choo choose se other other Insura Insurance nce plans plans beyond beyond the the Basi Basic c Plan Plan offered by the Government, as they wish, and can have the money routed similarly for all their transactions - 1st to the MIA, then to the LIA or directly
Credit routing for the MIA & LIA ● The sa same me fea eatu ture res s of the MyBHIM MyBHIM account should be available in K-BHIM K-BHIM accounts. accounts. ● Hence all K-BHIM K-BHIM accounts accounts will have the DR, MIA, LIA and DD. ● CC-BH BHIM IM acc accou ount nts s wil willl not not hav have e MIA MIA an and d LIA LIA.. They will have only the DR and DD.
● NO PERSONAL TAX ● NO CORPORATE TAX ● 10% CREDIT FOR EVERY COMMERCIAL TRANSACTION ● MEDICAL INSURANCE ● LIFE IN INSURANCE ● RETURNS THROUGH NSE BHIM
AREN’T THESE ENOUGH REASONS FOR THE COUNTRY TO TRANSACT THROUGH BHIM?
VIRTUALLY NO GST NO GST FILING NO CORPORATE TAX FILING NO PERSONAL TAX FILING
EASE OF DOING BUSINESS ● India will be THE No.1 COUNTRY COUNTRY in the WORLD for EASE OF DOING BUSINESS. BUSINESS. ● India will also become a prefered destination for all Global companies to set up shop, without additional inducements,, simply on the basis of our huge market & inducements the absence of TAX. ● Indian based companies can be global corporate leaders and owners. After all, we already head corporations in
BETTER STATISTICAL MANAGEMENT ● Since MyBHIMs MyBHIMs are linked to Aadhaar and C-BHIMs & K-BHIMs K-BHIMs are also linked to GST No., precise Data Management of the entire Economy will become a Reality. ● Accu Accurat rate e Con Consu sume merr spe spend ndin ing g dat data a wil willl be be available to manage all statistics precisely.
SETTING UP THE C-BHIM IN MINUTES ● Existing companies should be able to get their C-BHIM accounts against their existing GST numbers. ● Ind Indivi ividua duals ls wis wishing hing to do do busin business ess jus justt need need to to open open thei theirr C-BHIM accounts through their BHIM applications which will give them an auto-generated GST No. linked to Aadhaar. This process should happen within 5 mins. ●
Slogan - Just 5 Minutes to start doing Business in India.
● C-B C-BHIM HIM acco account unts s will will enable enable them them to to sell sell produc products ts where whereas as MyBH MyBHIM IM
Digital Proprietorship Registrations (DPR) ● A separa separate te categ category ory of GST GST no no.. can be be had for this this-ma -maybe ybe link linked ed as
Digital Proprietorship Registrations (DPR) ● This category should cover all small traders like small petty shops, flower sellers, tea sellers, pan shops, vegetable sellers, egg sellers etc who are individuals doing their own small business. ● They They dont dont need need to do any any annual annual fili filing ng as long long as as they they transa transact ct throu through gh BHIM. They can transact through QR cards/Debit cards/Phones etc.
● This This is the the curren currentt unorga unorganiz nized, ed, unac unaccou counte nted d sec sector tor.. So, this this system will get them organized and accountable, atleast as far as financial transactions are concerned.
Digital Proprietorship Registrations (DPR) NO GST ● They dont even need to have a smart phone to conduct their business. A BHIM QR card can be carried by them to receive and make payments into their accounts. Through OTPs/PINs/SMS confirmations, they can make and receive payments. ● This section that comes within the DPR is the section that is likely to create and sustain an informal economy. So, there should not be any unnecessary rules & blocks that will hinder them from becoming part of the Digital Economy. ● The 20% credit credit that that the the Go Gover vernme nment nt can can rece receive ive from from each each DPR DPR transaction will be a huge figure. The DPR itself can cover half the GDP.
Digital Proprietorship Registrations (DPR) NO GST ●
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These These small small busi busines nesses ses will will also also recei receive ve all all the benef benefits its-10 -10%,Co %,Comple mplete te Tax Tax Free Transactions, free MI & LI through MyBHIM+credits from their personal as well as commercial transactions. Curren Currentt propri proprieto etorsh rship ip regis registra tratio tions ns can can be conve converte rted d to the the DPR. DPR. Throug Through h a simple simple appl applica icatio tion n report report,, they they can have have figu figures res avai availab lable le on thei theirr phones, either as sms or a screen report such as ○ To Tota tall Mon Money ey rece receiv ived ed - for for the the Day Day ○ To Tota tall Exp Expe ense nses - for for the the day day ○ To Tota tall Mon Money ey rece receiv ived ed - Mon Month th to Date Date ○ To Tota tall Exp Expen ense ses s - Mont Month h to to Dat Date e ○ Mone Money y re receiv ceive ed - Yea Yearr to to Da Date ○ To Tota tall Exp Expe ense nses - Yea Yearr to to Da Date
FDI through BHIM ● Foreign Direct Investment into India should should also be made 100% Tax Free by routing it through BHIM, and C-BHIM of the company. ● Sinc Since e ther there e is no no tax, tax, the the per perfo form rman ance ce of of thei theirr companies and investment will be directly related to their own ability to run their companies. Hence, no other concessions should be given to them. ● The best best manag managed ed compan companies ies & the the availa availabil bility ity of the the best technology from around the world will also be a dynamic job provider for the economy.
Overseas Money remittance through BHIM 1. All general personal payments from outside India should also be routed through the BHIM gateway, only through MyBHIM/C-BHIM/K-BHIM. When the Banks receive the transfer, it can be withdrawn only using the BHIM 2. Cash Cash remit remittan tances ces to the the indiv individu idual al thro through ugh Mon Money ey Exch Exchang anges es etc will have to be banned completely. This will ensure that mischief makers will be accounted for. 3. Money Money Exchan Exchanges ges should should transa transact ct only only throug through h BHIM BHIM..
C-BHIM Stock & Sales Management ● ●
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BHIM applic applicati ation on shoul should d be able able to to issue/ issue/tra transfe nsfer/re r/recei ceive ve elect electron ronic ic GST GST invoices directly to MyBHIM/C-BHIM/K-BHIM accounts. The BHIM platfo platform rm with with C-BHIM C-BHIM should should be able able to gene generat rate e Sales Sales invo invoice ices s against stock received. So, it should serve also as an automated online stock management and billing system linked to GST HSN codes. This This should should grea greatly tly help help smal smalll & medium medium busi busines nesses ses who who can can transa transact ct throu through gh the phone itself. Bigger business can link their stock & billing systems through BHIM Any item item sold sold agains againstt a GST GST No. within within the the invoi invoice ce issue issued d by a C-BHI C-BHIM M seller seller (say D Dealer) to C will appear as stock in the C-BHIM of C (company). When C sells items to A/B, it will exit his stock and will also show as a bought item in the MyBHIM of A/B. So, A/B can also have a searchable/sortable
C-BHIM Stock & Sales Management ● C will be able to select the item from his stock displayed within his C-BHIM, when he chooses Invoice mode within his C-BHIM. ● C can scan the QR code of A to bill it to A ●
When A/B make payment to C through their MyBHIM, they will receive the invoice from C into their MyBHIM. ○ Govern Governmen mentt can colla collabor borate ate with with Exist Existing ing accou accounti nting ng & billin billing g platfo platforms rms to maintain the stock and sales system. ○ Govern Governmen ment’s t’s role role shoul should d be to ensu ensure re that that all trans transacti actions ons happ happen en within within the BHIM and GST link so that the revenue system in place will be maintained smoothly. ○ Superm Supermarke arkets ts & Retail Retail chai chains ns shoul should d be able able to link link their their billi billing ng & invoic invoicing ing through their C-BHIM & for payment using MyBHIM,C-BHIM,K-BHIM
C-BHIM Stock & Sales Management ● C-BHIM C-BHIM can be be desig designed ned to func functio tion n as a rob robust ust Stoc Stock k & Sales Sales Management system of the Nation. ● Like Like the India Indian n Railwa Railways ys Ticke Ticketin ting g system system,, the Stock Stock,, Sales, Sales, Bill Billing ing and Movement of Goods & Services in the country can be managed & tracked effectively through appropriate servers. ● We will will be able able to have have Liv Live e Stati Statisti stics cs on on the the way way India India doe does s Business.
● Using Using the Lat Latest est Blo BlockC ckChai hain n and and AI sys system tems, s, we can have the BEST Finance + Stock & Sales Network in the world.
ZERO Minimum Balance Banking ●
All Bank accounts should be made as ZERO Minimum Balance accounts.
● Typic Typicall ally, y, the the money money is is going going to to be main mainta taine ined d in Banks Banks as as usual usual,, and the transactions done through BHIM, either directly or by transferring DR-Digital Rupees of the BHIM. ●
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Bankin Banking g system system will be the fundam fundamenta entall backbo backbone ne of the Financ Financial ial Transaction system of the country with the BHIM being the network to execute the transactions. The volume volume of of trans transact actions ions done through through banks banks is also also going going to increa increase se substantially. The system of doing all transactions through BHIM will also ensure that all Indians have and USE their bank accounts.
ZERO Minimum Balance Banking ● BHIM BHIM Magn Magneti etic/Q c/QR R cards cards can can be be used used for transa transacti cting ng the the DIGITA DIGITAL L RUPEES. Using these cards or the BHIM application, money can be transacted back and forth between BHIM & Bank account. ● The DR will thus also add an extra layer of security security to their bank
accounts since only the necessary amount needs to be transferred to their BHIM Debit/QR cards/DR whenever required & the Bank accounts dont need to be directly exposed for all regular transactions. ● With With so so many many natu natural ral advant advantage ages, s, its its only only fair fair that that all all Bank Bank Accounts are zero balance accounts.
Maintaining the BHIM system ●
It will will not be be practi practical cally ly possi possible ble for for the the govern governmen mentt to maint maintain ain the the front front end of the BHIM system by offering good customer care services on a daily basis. ○ Hen Hence, ce, Gove Governm rnment ent sho should uld onl only y provi provide de the the BACKBO BACKBONE NE for for it, the
Front end and the Back end should be maintained by Banks ○ ○
and suitable Service Providers like Payment Banks, who can run it efficiently from a citizen/user’s point of view. The Gove Governm rnment ent nee need d not als also o take take the the troubl trouble e or resp respons onsibi ibilit lity y of running it by engaging directly with customers daily. Govern Gov ernmen mentt shoul should d only only gover govern n the the compl complete ete sys system tem,, provid provide e the the necessary security & count their (Digital) cash :-)
Maintaining the BHIM system ● The AAD AADHAA HAAR R No. No. itse itself lf can can be be the the BHIM BHIM acc accoun ountt numbe number. r. ● All exi existi sting ng Ban Banks, ks, Pay Paymen mentt Banks Banks and Wa Walle llets ts can can be the the Front End. The E-Wallets, Payment Banks & Bank Debit cards should all be linked to the BHIM account number. ● The They y can can issu issue e DR QR car cards ds and int integr egrate ate the their ir bank banking ing applications with BHIM. ● A Bank Bank BHIM BHIM app applic licati ation on can can also also be an an alter alternat nate e for for the the Govt. Govt. BHIM application. ● The They y can can funct function ion as they they are doi doing ng now now but but all all Digi Digital tal Transactions should be routed through BHIM so that every user will get the credit into their DD account for every
Maintaining the BHIM system ● The E-Wa E-Walle llets ts and and all all other other Serv Service ice Prov Provide iders rs shoul should d functi function on within the Guidelines issued on BHIM, by the Government/RBI. ● The The RBI RBI and and Gove Govern rnmen mentt shou should ld ens ensur ure e that that the the bes bestt infrastructure is provided to support seamless transactions across India on BHIM considering the number of people and transactions that are going to be made through it. Nothing short of best in the world should be our forever goal. ● In fact fact,, in thi this s case, case, we shou should ld be be setti setting ng the the stan standar dard d for what can be considered as the Best in the World.
K-BHIM ● The K-BHIM will be a huge opportunity to bring the entire agricultural sector fully & directly into the System. ● For the the firs firstt time time,, the the Farme Farmerr will will also also have have an addi additio tional nal source of Income, just by transacting through BHIM. ● The K-BHIM K-BHIM can be design designed ed to accomm accommoda odate te all the assets of the Farmer, including Land, Cattle and Machinery. ● Every Every trans transact action ion throug through h K-BHI K-BHIM M bring brings s all all the the benef benefits its to
K-BHIM ● An ineffi inefficie cient nt farme farmerr is of no no use use to himsel himselff or to the the society. We have more or less taken it for granted that Farmers are suffering and hence loans have to be waived. ● People People are fool foolish ish enou enough gh not not to think think that that it it is thei theirr money money that is being used to pay for these Loan waivers. ● On one one hand hand,, the the farme farmerr is burden burdened ed due due to to expen expendit diture ure on pesticides, fertilizers etc & then a loan waiver racket is played out. Neither Farmer nor Nation benefits from these.
K-BHIM ●
The British Environment Secretary, Michael Gove has warned-Parts of Britain’s farmland are just 30 to 40 years years away from becoming barren wastelands -
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http://www.dailymail.co.uk/news/article-5014541/Farms-wasteland-just-30-years-says-Gove.html
This is
the state of a country that has enough rainfall every year to wash away harmful pesticides & fertilizers. Hence, Hence, the the focus focus shoul should d be on deve develop loping ing effic efficien ientt farming farming pract practice ices s that that nurture the soil and support revival of local water bodies bodies & streams. Till 150yrs back, we had completely self-sustaining farming communities supplying food and spices to the whole world. Farmer Farmers s should should be ince incenti ntivize vized d based based on thei theirr mainte maintenan nance ce of soil soil healt health, h, water health & productivity.
K-BHIM ● The K-BHIM K-BHIM system system should should be design designed ed so so that that all the necessary monitoring systems are available to the farmer on his Phone. ● This This shoul should d help help both both the the farme farmerr and and the the gover governme nment nt monitor the efficiency of farms ● Our entire research & resources should be focussed on using the most modern efficient systems to develop wholesome organic farmlands that we leave as a lasting legacy for our future generations.
INTERNET INFRASTRUCTURE FOR BHIM ● Access Access to the the BHIM BHIM infras infrastru tructu cture re shou should ld be be made made avai availab lable le FREE across all service providers and formats-Mobile Data, Fixed Line Broadband etc. ● Since Since ever everyon yone e is is likel likely y to use BHIM, BHIM, ever everyon yone e is bound bound to to have Internet Connection sooner or later. Hence, these service providers will benefit in multiple ways. ● Hence, the BHIM application should be given free Internet access, across all platforms. ● Thi This s must must be legisl legislate ated d as one of the requir requireme ements nts for being a service provider.
PROPERTY REGISTRATION THROUGH BHIM ●
Special Rates for Property Registration ○ For proper property ty transa transacti ctions ons now now,, the system system itself itself gives rise to the possibility of black money generation. ○ Eg.If Eg.If a p prop ropert erty y h has as a mark market et value value of Rs.1Cr Rs.1Crore ore,, and the current guideline value is Rs.60Lakhs, the registration of the property is done according to the guideline value and the rest of the amount can become black money.
PROPERTY REGISTRATION THROUGH BHIM ● ● ●
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Under Under the the BHIM BHIM syste system, m, the the regist registrat ration ion char charges ges should should b be e very very minima minimall because the objective is to get the bigger amount fully into the system. ALL PROPERTY TRANSACTIONS TO BE DONE ONLY THROUGH BHIM Any prop propert erty y sale sale value value shou should ld AUTOM AUTOMATI ATICALL CALLY Y includ include e 20% 20% GST. GST. This This will will be a GST Inclusive Inclusive Invoice. Invoice. So 1Crore or any property Sale Value will include 20% GST. It is not a certain value+20%; any declared sale value will be with 20% GST inclusive. Buyer Buyer & Selle Sellerr will will receiv receive e 10% each each,, of the the Sale Sale Value Value into into their their DD DD accoun accounts ts which will be available to them after 1 year, for use within BHIM. So, the the whole whole valu value e of the the Prope Property rty comes comes into into the the INDF. INDF. Govern Governmen mentt gets gets to use 20% DD amount (Rs.20Lks here) The Transa Transacti ction on b beco ecomes mes Tax Free Free as a furth further er ince incenti ntive ve + net DD valu values es go go
Rental Transactions & General Transactions through BHIM ● Similarly, for Rental and similar Transactions like House Lease, Commercial Spaces etc, an AUTOMATED GST INCLUSIVE invoice can be issued through C-BHIM. ● The Adva Advance nce Paym Paymen entt for the the Rente Rented/L d/Leas eased ed spac space e can have have a 20% 20% inclusive amount into amount into whatever the Advance Amount is. ● A rent rent paid paid can can have have a simi similar lar 20% GST amoun amountt as an AUTOMATED INCLUSIVE AMOUNT. ● Eg. A Hom Home e Rent Rent of Rs.1 Rs.10,0 0,000/ 00/mo month nth will will have have the the 20% 20% GST GST amount amount automatically built into it under a Rent Category. When the rent of Rs.10,000/Rs.10,000/- is paid, Rs.1,000 each goes automatically automatically into the DD account of both Payer and Receiver. Based on these, a typical Basic Household expense payments through BHIM & gains are shown
General Monthly expenses of a Basic Household, Billed through C-BHIM with 20% GST Rent collected with 20% GST
Monthly Expenses
Monthly Credit Return to Payer in DD account
Monthly Credit Return to receiver i DD account
10,000
1,000
1,000
Phone Bill like Jio
150
15
15
Electricity Bill
500
50
50
TV channels
200
20
20
4,500
450
450
10,000
1,000
1,000
700
70
70
2 Lts Petrol @Rs.75//day for 30 days Groceries Cooking Gas 1cylinder for month
Total Monthly Expenditure of Basic Household 26,050 Annual Expense 312,600 If Advance for the rented house is paid through BHIM with 20% GST included
Annual Credit Return to Payer
Annual Credit Return to Receiver
Monthly GST Monthly GST credit Annual GST Credit Annual GST Credit Credit into Payer's into Receiver's DD into Payer's DD into Receiver's DD DD account account account account 2,605
2,605
31,260
31,260
Annual Availability to Govt.
Monthly Availability to Govt
62,520
5,210
100,000
Total Money available at the end of one year, to a basic householder just by transacting through BHIM
10,000
10,000
41,260 (31,260 + 10,000)
A BASIC HOUSHOLDER GAINS SIMPLY BY TRANSACTING THROUGH BHIM ● Simply Simply by transac transacting ting all the basic basic house household hold expenses expenses and utilities utilities through BHIM, a basic householder gains. ● On a gene genera rall basic basic annual annual expe expens nse e of arou around nd R Rs.4 s.4Lak Lakhs, hs, the householder receives around Rs.40,000 at the end of the year. ● The Householder DOES NOT NOT receive ANYTHING ANYTHING for these transactions as of now. ● The Hous Househo eholde lderr may not not even even receiv receive e an invoic invoice/a e/ackn cknowl owldge dgeme ment nt for his House Advance or Rental amount. ● Governm Government ent receive receives s aroun around d Rs.80 Rs.80,000 ,000 for the year through through these these transactions of a SINGLE HOUSEHOLDER. EVERYBODY GAINS
ANNUAL FILINGS UNDER BHIM ●
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For DPR For DPR acco accoun unts ts,, no no fili filing ng is requ requir ired ed.. ○ The annual statements already available in the BHIM application can be electronically approved. ○ Thus even rental transactions can be done as a DPR tansaction and if anybody wants to buy or sell things through OLX type platform, they can have DPR accounts easily and transact through C-BHIM to receive their 10% For Corp Corpora orate, te, Private Private Ltd acco account unts, s, Annua Annuall CA Audit Audited ed filin filing g of BHIM BHIM statements can be done. Compani Companies es & Indivi Individua duals ls can can give give an online online Lega Legall undert undertaki aking ng that that there there have been no Non-BHIM financial transactions. All Non-B Non-BHIM HIM tran transac sactio tions ns are are taxabl taxable e & shoul should d be file filed d in the the curre current nt
APPLICATIONS AROUND BHIM ● Applic Applicati ation ons s can be buil builtt aroun around d BHIM BHIM to to serve serve most most basic basic necessities. Simple Aadhaar/GST linked invoicing through the BHIM application in the Phone, is the primary requirement ● An Auto Autoric ricksh kshaw aw that that is not not part part of OLA OLA Auto Auto can have have a simpl simple e Invoice generator that is linked to Google Maps that will give the trip distance, rate based on trip distance. ● In Invo voic ice e wil willl be a 20% 20% G GST ST Inc Inclu lusi sive ve Inv Invoi oice ce ● Transa Transacti ctions ons comple completed ted betwee between n C-BHI C-BHIM M & MyBH MyBHIM IM to to get get the the necessary credit. OLA cabs can issue BHIM invoices. ● Simila Similarr apps apps can be devel develope oped d for for simple simple basi basic c transa transacti ction ons s for vegetable sellers etc where a QR card based transaction happens
India Investment Fund (IIF) ● A separate India Investment Fund (IIF) should be set up as a component of INDF, which can replace the role of Tax Free Havens in the world. ○ The only only requir requireme ement nt is that that they they shoul should d mainta maintain in their their fund funds s in India only through IIF. ○ They They should should have have comple complete te const constitu itutio tional nal guaran guaranty ty for for their their funds. ○ Most Most big big comp compani anies es in in the the worl world d have have figure figured d in in the the Paradise papers leak. It is only natural for Companies to want to use their funds most profitably and efficiently.
India Investment Fund (IIF) ● ● ●
Thes These e fund funds s shou should ld com come e to Ind India ia for for a nob noble le cau cause se.. The IIF IIF can can be used used for for build building ing Infra Infrastru structu cture re that that most most of thes these e compan companies ies can also make use of, for their own own businesses in India. So, unlike unlike puttin putting g itit in useles useless s Tax Tax Haven Havens, s, they they will will have have purposeful as well as profitable activity here . ○ They They will will come come here here ifif there there is con consti stitu tutio tiona nall guaran guaranty ty.. ○ Once Once they they come come in, they they have have enough enough reasons reasons to to increas increase e their their own own busines business s presence in India which will again translate into the best technology coming to India, more jobs etc ○ Thi This s combin combined ed with with the the Tax Fre Free e status status thro through ugh BHIM BHIM wil willl be a his histor toric ic opportunity for both the country and them. ○ Whe When n most most corpo corporat ration ions s from from USA, USA, CHI CHINA, NA, ISR ISRAEL AEL,, UK & EUROP EUROPE E are are functioning here profitably, we will not be having undesirable issues
India Investment Fund (IIF) ●
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Tax Free Free stat status us of the Indian Indian Econom Economy y & the the Huge Huge Mark Market et that that we have have should should get the best of the best, in everything, into India. ■ All All new new prod produc ucts ts and and tech techno nolo logy gy sho shoul uld d be be launched in India. ■ The The wor world ld shou should ld get get it it from from Indi India. a. We can can even even consid consider er givin giving g them them intere interest st on par par with with what what they they get get in Western Economies.
They should not be given any special privileges. ■
They They should should be here here to to do busi busines ness s in the the prop proper er way way for our Mutu Mutual al Benefit.
India Investment Fund (IIF) ●
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They They can pull pull out out their their mone money y from from Swiss Swiss Bank Bank type type places places and and park park it in in India. India. When the money of the world is kept here, we will automatically have security! These These place places s got their their mone money y and wealt wealth h initia initially lly by loot looting ing othe others rs but in in the process they became Developed countries and Rich countries & have been dictate terms to us & also laid down laws across the world. Now, Now, we have have to play play thei theirr game game smarte smarterr than than them them and and if its its done, done, over over the the next decade, the whole of India will be transformed. We alrea already dy have have the the skille skilled d labour labour forc force, e, an educat educated ed work work forc force, e, and and Qualitative difference will happen with the presence of more Money, in the country. India Ind ia shoul should d regain regain its its posit position ion of of having having atle atleast ast 1/3r 1/3rd d of the the world’ world’s s GDP. GDP.
RF-Retirement Fund One additional component can be added to BHIM - People can start saving for a Retirement Fund. This can give the Government an additional Fund Pool. It can be worked out like this ● ● ● ● ● ●
At the the end end of of the the 1st 1st year, year, credit credit is is avail availabl able e from from DD to DR. People People can can be given given a choi choice ce of putti putting ng it in an RF accou account nt withi within n their their MyBHIM/K-BHIM~either 25% or 50% or 75% or even 100% of it. They They can choos choose e a period period of of 10/20/ 10/20/30/ 30/40 40 yrs for for this this at a bette betterr rate of of intere interest. st. Money Money in in the the RF will be avai availab lable le to to govern governmen mentt for for this this perio period. d. People People will have have their their savin savings gs and and securit security y taken taken care care of at at old age. age. This This fund fund can can als also o be be par partt of NSE NSE BHI BHIM. M.
RF-Retirement RF-Retirement Fund Fund ● Govern Governmen mentt will will thus thus be flush flushed ed with with funds funds from from mult multipl iple e source sources, s, daily, with minimum effort, and can focus on developing the best infrastructure for the country. ● We shou should ld move move to to a fully fully ‘Made ‘Made in India’ India’ Econom Economy. y. ● Instea Instead d of procu procurin ring g defenc defence e equipm equipment ents, s, we shou should ld event eventual ually ly be making all of it & exporting and making money there also. ● All toge togethe ther, r, the the engage engagemen mentt betwee between n people people and and gover governme nment nt shoul should d be productive both ways from the start of their productive life till the end of it. The RF will probably complete the engagement.
● So, the Gov Govern ernmen ment, t, peop people le and and econ economy omy wor work k toget together her and form a strong bond for a new generation for creating a new Dynamic India that Leads the World.
● Appare Apparentl ntly y Cash Cash sti still ll acc accoun ounts ts for 70% of Ind India’ ia’s s Total Transactions by Value. ● India’ India’s s pay paymen ments ts mar market ket whi which ch is wor worth th les less s tha than n $200 billion now, is expected to touch $1 TRILLION by 2023 but is nothing in comparison to China’s current $5 TRILLION market. ● A sho shock ckin ing g sta stati tist stic ic is th that at a MILLION MILLION Indians reach employment age EVERY MONTH MONTH and more than 93% of workers in India are currently employed in the unorganised sector.
● Peop People le ar are e sti still ll ex expe pect ctin ing g Gov Gover ernm nmen entt to to provide jobs and job creation remains one of the biggest challenges. ● Chan Changi ging ng the the mi mind ndse sett of th the e peop people le is is important. Government cant be expected to be a job provider. ● Unle Unless ss th the e bus busin iness ess en envi viro ronm nmen entt op open ens s up in our country, we are going to have some tough times ahead.
Bharath BHIM is an effort to address 2 important necessities Accountability in financial transactions as well as Creation of a FREE & Vibrant Business & Entrepreneurial Environment.
The concept & the framework given here should be worked out technically, with the right economists, to build the world’s first, fully inclusive, dynamic, digital economy. If we have a headstart in this, we will be able to surge ahead as a country & regain our pre-eminence as a civilization
The best part of this is - this system can be executed side by side with current cash transaction systems. However, Government Government will need to be prepared for a huge surge in the volume of transactions and on execution day, the BLOCK CHAIN SERVERS should be fully ready to handle transactions of the entire nation
BHARATH BHIM
JAI HIND
