Petition to make cashless transaction mandatory by law for buying gold or Jewellery


Petition to make cashless transaction mandatory by law for buying gold or Jewellery
The Issue
Any transaction above some amount(e.g.INR400) should be made mandatory to be non-cash based at jewellery shops from 1Jan2017 onwards. Buyer must be enforced to keep reciepts, just like car registration certficate. Don't we all keep it with care.
Today there is option of giving PAN number but that does not prevent person from using black money & govt cannot investigate everyone. Preventive means are better for country with huge population of 125Crore.
If you feel what impact it can have… take a glance at annual revenue of this industry. its whooping ~5 Lakh Crore, projected for 2018. (LINK) . This pdf also states that ~57 percent of the investment demand comes from bars and coins. Hope you see the catch.
This will
- Further cashless economy.
- make it difficult to stash black money in form of gold & jewellery
- make it difficult to spend black cash money on luxury expenses.
- Some people may be well off but not in formal banking out of inertia. This enforcement will give 2 cents of reason to people to use formal banking.
- Very minimally impact to poor people, who cannot handle cashless means.
- prevent conversion of remaining black money after demonetization, if implemented soon(ideally in dec16 itself). Some people have been able to convert their black to new currency. They will nor have motivation to dispense that money by buying gold. Good if this policy is implemented asap.

The Issue
Any transaction above some amount(e.g.INR400) should be made mandatory to be non-cash based at jewellery shops from 1Jan2017 onwards. Buyer must be enforced to keep reciepts, just like car registration certficate. Don't we all keep it with care.
Today there is option of giving PAN number but that does not prevent person from using black money & govt cannot investigate everyone. Preventive means are better for country with huge population of 125Crore.
If you feel what impact it can have… take a glance at annual revenue of this industry. its whooping ~5 Lakh Crore, projected for 2018. (LINK) . This pdf also states that ~57 percent of the investment demand comes from bars and coins. Hope you see the catch.
This will
- Further cashless economy.
- make it difficult to stash black money in form of gold & jewellery
- make it difficult to spend black cash money on luxury expenses.
- Some people may be well off but not in formal banking out of inertia. This enforcement will give 2 cents of reason to people to use formal banking.
- Very minimally impact to poor people, who cannot handle cashless means.
- prevent conversion of remaining black money after demonetization, if implemented soon(ideally in dec16 itself). Some people have been able to convert their black to new currency. They will nor have motivation to dispense that money by buying gold. Good if this policy is implemented asap.

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Petition created on 26 November 2016