Digital Money-new banking system

Significance of digital money and new banking systems are important in this difficult situation of Corona virus Pandemic. 

On seeing large queue and crowds in banks, standing for long durations to know whether they have  received the amount announced by the State and Central Governments as relief measures makes me to strongly  recommend the digital money and new banking systems. 

Many banks have given phone numbers to enquire about there bank balance and cash transactions, still why large population is not using these facilities shows some Gaps in our banking management and public's education about mobile and internet bankings. 

Once we have, amount credited to our account, at present there are many ways to spend that money through several digital transactions like use of debit cards and internet banking.Non digitally we need to withdraw cash from our bank account or use cheques to transact. 

Cheque system of transactions are good to escape from the crowds in bank, but cheques are not accepted by many kiosk banks or CSP (Consumer service points). This shows the ego based enmity between Reserve Bank, Main bank branch, Kiosk bank staffs and literate intellectuals in the unorganised sectors.

Cash and Cheque: Cash is given by the Reserve bank, it is an asset of Government and has very high liquidity and Nationalism sentiments associated with it. Cheque is an asset of the bank, is given to the account holders and its value and liquidity is based on the bank-balance of the account holder and how different banks and nearby transaction environment deals with it.
Technically there is no difference between a cash and a cheque, but sentimentally or on emotional grounds there is a vast difference between them.
To understand in better way, scientifically the blood of the president and a pauper is same, but on the basis of social hierarchy, the blood of the president is very precious or valuable, while that of the pauper has hardly any value!
Cheque bounce is a big problem associated with a low strata-literate intellectuals.

The numbers present in the cash can become an unique identity number for it, and this number can be loaded in the digital system, it can show the transaction records associated with the cash.  

In boost of digital economy, options to spend came in many forms, say, debit-credit card, internet and mobile banking, aadhar-linked payments etc. But to recharge a bank account, one needs to deposit cash or cheque in there account through a bank or a bank linked kiosk. 

Accounts can also be recharged through a credit facility and deposits made by the other party in a transaction system. 

I also feel that a resourceful intellectual of an unorganised sector should also be allowed to recharge there bank accounts through upload of the numbers on the cash through an internet or a digital system.

These numbers should be unique and should have the ability to provide digital-transaction records associated with the cash. Having QR Codes, Bar Codes, etc. can also make a cash unique and easily identifiable by a machine. 

After upload of cash in the digital system, the cash in hand will loose its physical value and needs to be crossed/marked. 

I also suggest that the unique numbers associated with a cash, uploaded in a digital system should have the ability to be downloaded and again become a cash in hand. Through the unique numbers a person will have the ability to print cash. 

Portable Digital Wallet: Like a mobile and smart phone, there should be a Digital Wallet, that can read debit and credit cards, Cash, Cheques, Numbers, and the like. All active individuals should have the knowledge about the digital money and transaction systems. They all should try to posses the Digital Wallet. 

The Digital Wallet will have Blue tooth+/Wifi (Wireless fidelity)+/RFID (Radio frequency Identifications), GPS (Global positioning system), etc. and also a mini keyboard with numbers and some alphabets. 

One Digital Wallet should have the ability to identify and show other Digital Wallets near it. One Digital Wallet should be able to transfer and receive money from the other Digital wallet. The digital wallet should have the ability to upload cash in its system through unique numbers on the cash and Cheques. 

In this system the current banking structures will partly collapse and new type of data storage and management structures will come up. 

A village can have one Data House that will record all day to day financial transactions in the village. Its Data Management facility should have the ability to quickly find the validity of a cash/cheque/Unique number on a paper.
Its technical ability should be high enough to prevent Cheque/Cash Bounce, duplication errors and other digital frauds.

In case of uploading cash in a machine, chances of using guessed unique numbers, on random basis are there. To prevent this, the other details on the cash like its date, time and place of generation can also be entered. 

Crossed cash! Though sentimentally it is not good, but even now in the society, many people use art works on the cash, and often such cash retains its value and liquidity. After uploading the cash in the machine, crossed or marked cash can be given to the banks. Such deposits on compulsory basis will increase delay in functioning. So it should be on freelance duty basis. Banks should give some credit for deposits of crossed/marked cash.

New systems can be tried in a small populated area, and there socio-economic feasibilities should be estimated, before implementing them on large scale. Any new system brings fear and chaos in a traditionalist/conservative population. But any new system brings many promising benefits too and a rationalist approach is the best. 

Earning Money: A person earns Money by "Creating value for others and receiving payments as rewards". A person often gets money through Trade, Service, Commission, Tax, Luck, Emotional attachments, enchantments (Lurements), Donations, Coercion and through Chance (Opportunities).