OTP...
First register different simple algorithms with the service provider. similar to the PW abc swapped to bca or the PW convert frm small letters to capital letters.
Apply the algorithm on the supplied OTP by the user and input.
This will prevent unauthorized transactions.
eg: 1st algorithm for genuine transaction.
2nd for one is in danger.
3rd for mock transaction. etc
the user can assume his own algorithm suitably the algorithms known to the service provider & user only.

3. A simple move of removing 500 and 1000 notes from circulation itself will reduce cash usage tremendously
4. Cash withdrawals above 10000 a month should be subject to tax of 1% of amount above 10000.

2. Businesses should be mandated to record all cash transactions in a Centralised CASH Transaction registry within 24 hours of transaction else they would attract an additional penalty. This alone will stop back dating of transactions and cooking of books

1. Companies, businesses should have to pay some % on both cash receipts and payments as cash handling tax. This would apply to all entities who pay taxes on profits (Revenue - Expenses). This % of tax should be high enough for businesses for it to act as deterrent. I suggest a rate of 5% which the enterprises are free to recover from those being paid or from whom cash is being recovered similar to service tax.

Its a good Proposal and there talks are in air from very long time.
The Government should focus on this very seriously and develop a pattern so that this plan is reached to every common man in our country.

Strictly there should not be any Service charge or Tax for this !!

I beleive following rules/ law must be made by government.

1. make it a law that no business should provide cash only option.
2. make a list of all payment facilities under rbi and make all of them available to all.
single step registration for businesses and more options for customers.
3. levy a charge on cash withdrawals from bank.or limit cash withdrwals(will help in decongesting banks)
4. make all atms multifunctional kioks
5. corporate taxes payable through non cash modes only

Small and medium size shops are not interested in swiping the Card payment as they get their money deducted by 1-2% by the bank as transaction charges. Govt should promote RUPAY card and there should be no deduction to the merchants.They should get the equivalent money they have swiped. There are following benefits to this.
The seller will issue a Invoice to that transaction thus paying actual VAT on the transaction.No need to draw Cash from ATM, So less load on ATM.Less chance of fake Notes.

The draft looks promising. Removing the service charge on credit/debit card transactions would definitely help promote non-cash transactions. Mandating settling high value transaction of more than 1 Lakh INR through electronic transaction only is another promising aspect of this proposal. This would help curb black money transaction to a large extent.

Jai Hindh
we have seen that most of the shops do not encourage Card payments due to extra charges they have been charged for such transactions. some charge it on customers. By replacing these charges by INCENTIVES to both customer and shops really we can make it more workable.supplying POS machines at nominal charges to SHOPS & HOTELS
PROVIDING E-CASH FACILITY IN TRANSPORT CORPORATION BUSES..!( where only liquid cash is being used so far)
REDUCING Taxes On E_PAYMENTS
can help in its success

Great decision, will surely help to reduce black money