Around 20 years back had shifted to Mumbai suburbs on rent. Here there was this one shop which was like a mini Big Bazaar of that time. Huge for that area. During the same period there was shortage of coins. What the shop did was put a round stamp on a small piece of paper and write the denomination of change due and give to customers. It was like an IOU. Customers were asked to use the same next time they shopped.
Slowly one was able to use the same at small businesses, eateries, etc. It was like a private currency being circulated.
Then one day overnight the shop winded up. Nobody knew what happened. Just disappeared, lock stock and barrel.. and also with the cash the shop owed against the private currency.
Technically the IOUs should be equal to what the shop owed to its customers, but who had an account of how many such IOUs were actually circulating? There is as such no account of how much the shop owners siphoned off. Some say that other shop keepers were also hand in glove on circulating the fake currency. But in the end it was the general public which was 'short changed'.
The reason for the blog? Without naming any particular app, I see a parallel private banking being promoted after demonitisation. What are supposed to be online payment facilities for shopping sites are now being promoted as online payment app for all business. But are they regulated? Once using this online app, the physical money lies with the app promoters at their disposal and mercy. I am not against this. I am only saying this needs to be regulated. Or the Government should come up with its own app under Jan Dhan umbrella. This way the public money will be with the Government to use for its various projects instead of with Private unregulated app promoters.
