The implementation phase

System can be implemented in following steps

Read article >> Daily Loksatta, 3rd Dec 06

	Carefully planning in phased manner
	Timeline for all phases
	Abolition of the existing Tax system. >>more Abolition of the existing Tax system will be effective from a single predetermined date. Simultaneously, the deducting of Transaction Tax from all bank transactions will commence.
	No currency notes of denomination higher than Rs. 50/-. >>more Currency notes of denomination higher than Rs. 50/- will be phased out in a time - bound manner. All this money will attract the standard deduction of Transaction Tax and the balance will be treated as a legitimate wealth thereafter. Regulations governing Cash transactions will also come into force.
	Anticipation of the magnitude and time of revenue generation. >>more The magnitude and time of revenue generation by this system needs to be anticipated. Initially there will be huge deposits of cash of high denomination into banks, and there will be huge inflows of revenue throughout the phase of currency compression. To handle and manage such huge transactions, banks will need to widen their network, and upgrade their operating system comparable to international standards.
	Monitoring the effects of implementation steps. >>more The effects of these steps will need to be carefully monitored and fine-tuning action will have to be taken as and where required. Tools of monetary governance will have to be judiciously used to control inflation.
	A strict watch on Government spending. >>more Post implementation, A strict watch will have to be maintained on Government spending. The highest degree of transparency will have to be brought into all Government spending decisions.

Round the clock, round the year continuous stream of revenue to the Government.

The day when currency compression is completed, and 50 rupees is the highest denomination in force, all currency money can be assumed to have come back into the system. Thereafter, all subsequent transactions will yield transaction tax and the Government will receive revenue in a continuous stream, round the clock, round the year.

Preparatory Phase

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