Certification course on Balance Sheet Finalisation

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Money has become an integral part of our life and it seems we all are satisfied with this system. It has been a long time since Barter system has been replaced by Money System and Currency in the form of Coins and Notes has came into picture. Earlier, people used to exchange things to fulfill one’s need.

The fact that Money is Indispensable cannot be denied. Every system has its own Pros and Cons and similar goes with MONEY SYSTEM as well. The extensive use of Money has given a boost to black money and corruption. The most important factor giving rise to black money is ignorance. Whenever, we go to market to purchase something, most of the times we don’t demand for a bill and such plentiful transactions contribute to the black money of our economy.

Money System has also paved the way for gratification and officers or employees fearlessly demand for gratification. Such transactions take place in uncountable numbers every day and add on black money and corruption. It is high time that the Point System which can curb the corruption and bring an end to black money should be adopted. It can be in the form of POINTS SYSTEMS.


Now a days, Token system is very much prevalent in most of the eating corners. At the same time, coupons are also used in showrooms and card used in hotels and restaurants. In all these cases, the currency is not directly floated in the economy.

Similarly, a Point System can be adopted to replace the system of money where in the purchaser will make the payment via Points and these Points can transferred by way of messages mentioning the brief details of the transaction. It should note that this transfer of Points will not take place in the absence of brief details of the transactions and as a result all transaction which can give rise to black money will not take place.

The Point System can erode and take away many unfair things going on in our economy. Adoption of Points System is need of the hour.


Suppose, you are in the Market and want to buy television worth RS. 40000/-. In that case, you need to make a Payment of Rs. 40000/- by way of cheque/cash/demand draft.  Now, if the Money System is replaced by the Point System, the television becomes worth 40000 POINTS.

In that case for the purpose of payment of television, you just need to send a SMS bearing identification No. of the Shopkeeper, Account Details, Transaction details and the Points get transferred from the purchaser to the seller.

So, in this Points System, NO CASH is involved, there is no question of raising bill and no transactions for illegal payments will take place as each transaction is recorded by way of message. As a result, there will be no hidden transaction and no question of black money.

The Point System will be an answer to many questions. The Point System will give rise to a national database and the transactions can be easily traced. Today, when we purchase a pen, we hardly think of demanding a bill. But in the case of points system the transaction will not take place in the absence of account transfer/SMS transfer/ card swapping and as a result these transaction will be recorded and can never give rise to black money.

Presently also, we use cards in shopping malls like Big Bazar, Vishal Mega Mart, Future Group etc. Petroleum Companies also issue cards called petro card, in all these cases, cash is directly not floated in the economy. The most commonly used is the Metro Card use by vast number of people in Delhi and other States where Metro Trains established.

Similarly, travelling companies also issue travelling cards to their customers to meet the expenses.

We need to take some steps to implement the Point System. Government of India has to take initiatives to literate people about the concept of the points systems. The government has to also take steps to provide card swapping machines at lower cost. The way Government has implemented its pilot project of UIN card, similarly this project of points system can also be launched and it is very much expected that people will accept it whole-heartedly.

At the initial stage people will have to surrender all cash and collect equivalent points. The points system will be very effective and impart economic growth, curb black money and illegal transactions, put an end to gratification and create wealth etc.

It is important to note that when currency will be used in intangible form, then no person will be able to enter any transaction in the absence of description of that transaction. Activities like selling of drugs, illegal weapons and gratification will come to an end besides, an effective control mechanism should be also implemented for controlling the easy transfer of gold, silver and other precious metals. The shopkeepers dealing in gold, silver and other precious metals should take a KYC of the customer and update the details in their database or system with product code identification and this database should be filed with Government.

This system will work as an effective measure to curb crimes and activities like kidnapping, black mailing and terrorism, activities like demanding for ransom, purchasing of weapon etc. will not find a place as points systems will trace the names of both the parties. By way of Points system, these unethical transactions will be stopped and as a result black money will also come to an end. Our newly elected president Shri Pranav Mukharjee also said in his first address to people that terrorism should be brought to an end and India should become a Corruption free Nation.

Further, we should also note that use of internet/ electronic transfer/ ATMs is becoming common day by day and is also within the reach of an average Indian person. Few days back, SEBI has came up with the concept of “e-voting” for listed Companies. BSNL has came up with an innovative idea of selling their special series Mobile number through SMS voting and toll free basic phone voting. In the same manner there are number of talent hunt shows like Indian Idol, Roadies, Nach Baliye etc wherein the winners are selected by way of SMS forwarded by the public at large. The contestants in programmes like “Kaun Banega Crorepati” are also selected by way of SMS and questionnaire rounds on telephonic conversation. Thus, we can say that most of the Indian populations are all “e-familiar” and mobile phones are within the reach of common man.

The points system will contribute a lot and in a number of ways. There, it is also important to mention that by the implementation of this system the income cannot be concealed and no one will be able to hide their income. As a result taxes will be paid and effective utilization of these taxes by the government will contribute towards the development of our Nation and Indian economy.

To conclude, the Point System will be effective in all ways and should be definitely taken note by the respective members of the parliament.

Arpit Suri

Company Secretary

CAclubindia's WhatsApp Groups Link

Published by

(Company Secretary )
Category Info Technology   Report

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