The more civilized, refined, analytical and scientific, that man became, the more refined, sophisticated, systematic and symbolic, became the form of currency. All that a primitive man needed was a hunting knife to satisfy his varied wants. Now that tool has progressed and evolved into the modern-day credit card, with which a man can buy anything he needs. The process of evolution continues into the future with currency changing as the times change. The present world economic scenario strongly requires the development of alternate modes of currency as a medium of exchange which can match the fast paced, computerized economy. The future is thus in the use of handheld, electronic 'Cash Pads' which will replace paper currency for many day-to-day transactions. Carefully developed electronic pads can control the happenings of fake currency, any many other type of fraud. It will also have the properties of better durability and dependability than paper cash. It can become true legal tender with almost no chances of black income. Practically every type of financial corruption can be avoided. Through this system, a monitoring body can have full control on the flow of currency (i.e., every deal can be accounted for). Electronic currency will certainly prove to be a scientific & technically competent mode of exchange. THE ELECTRONIC CURRENCY PAD: Electronic currency system can be operated through electronic currency pad to be issued to every citizen of the country. Electronic currency pad will be a small handy electronic instrument. This will have besides "on button", buttons from A to Z, Buttons from 0 to 9, payment button, bank payment button, receipt button, bank receipt button, search button and balance button with simple calculation buttons. These pads will have password operating system. Each pad will be assigned a unique code number for identification. These pads will also have screen, speaker, input-output sockets and a cord. ELECTRONIC CURRENCY PAD Electronic Currency will function on the principle that every deal/ transaction affects two sides, i.e., one is receipt other is payment (one is receiver another is 'giver', payment maker). This means that when one person is receiving from another, it implies that that another related person is paying. This is how the transaction will take place. Electronic Currency Pads will be fed, through Internet by banks, into their memory transaction codes issued exclusively for that particular pad along with all transaction codes issued to any electronic currency pad with in that country. These transaction codes will be computer generated which will come to be known only at the time of transaction. In this system, every financial transaction will be accounted and reconciled leaving no scope for unaccounted money i.e. black money. HOW ELECTRONICS CURRENCY PAD WILL FUNCTION? A. CASH TRANSACTIONS: Assume X pays Y for some purchases. This transaction will be performed through X's electronic currency pad and Y's electronic currency pad. Here X is payer while Y is receiver. X, on his electronic currency pad, will first switch on by pressing ON Button then will plug cord's one end into his output socket. Y will plug other end of the same cord into his electronic currency pad's input socket after switching on his pad. Now X will press payment button in his electronic currency pad. On pressing the payment button, immediately transaction code for the proposed transaction will appear in X's pad's screen. X will type the desired amount by typing related numbers under country currency mode and then press payment button. Y, on the other hand, will press receipt button. Now as X presses payment button, Y's electronic currency pad will depict in its screen the amount receivable along with X's transaction code. Now Y's electronic currency pad will verify for the validity of X's transaction code with the Y's electronic currency pad's memory. The memory of electronic currency pad contains, as already explained, transaction codes of the whole country issued to any electronic currency pad anywhere with in the country up to a particular period. These transaction codes will be fed by bank. Now if X's transaction code matches with the transaction codes in Y's electronic currency pad's memory, both X's and Y's electronic currency pad will be updated effecting the transaction. Both X's and Y's electronic currency pads will now be showing updated balance on pressing balance button. On utilization of the transaction codes, fresh series of transaction codes will be fed into the memory of the electronic currency pad through computer by bank. System should be developed in such a way that transaction code series is periodically updated by the bank. That means electronic currency pad's memory should be periodically updated with transaction codes for smooth functioning. At the time of updating, bank will also update the electronic currency pad's memory with all the transaction codes issued to any electronic currency pad any where with in the country. B. BANK TRANSACTIONS: Another present form of payment is payment through bank that means through cheque. In electronic currency pad system, payment through cheque will be like this- X has to pay to Y through cheque. X will press 'bank payment' button on to his electronic currency pad. Immediately, on pressing bank payment button, bank transaction code will appear in X's electronic currency pad's screen. Now assume Y resides in distant place. In this system, X will intimate Y, his bank transaction code together with the payable amount through telephone, fax, Email etc. Y will press Bank Receipt Button on to his electronic currency pad. Y, on knowing the X's bank transaction code, will feed that transaction code into his electronic currency pad along with the receivable amount as conveyed by X. Now system should be designed in such a way that this Bank transaction will be treated as provisional unless updated by the bank. That means updating of Bank transactions, in this system will be effected and balance will be updated only by bank. In this case X will approach his bank intimating about provisional bank transaction, similarly, Y will also approach his bank with his electronic currency pad stating particulars of receipted bank transaction. Now both X's and Y's bank will clear this provisional bank transaction through normal bank clearing procedure and accordingly update, both X's and Y's electronic currency pads and account statement with bank, for balance. This bank clearing will be through Internet for speedy clearance. In this way, Banks can function smoother, efficient and faster. No cheque is to be written, all costs and time relating to handling cheques is saved resulting in quicker business deals with easy realizations. Alternatively, Electronic Currency Pad can be designed to be operative without cord for electronic currency cash transaction. This improved device does not require input-output sockets also.
|E-currency System is a complete computerized monetary System, proposing to replace the present paper currency system. Initially it is planned to launch e- currency system as an alternative to credit/ debit card system. If accepted, e- currency system can automatically become legal tender ultimately replacing the physical paper currency system.|
*INCOME CYCLE EXPLAINED: