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How the Government can function with
NO PERSONAL INCOME TAX
NO CORPORATE TAX
+ give
10% return on every commercial transaction
for both BUYER & SELLER
+ have
NO GST filing for most businesses
+ give
FREE MEDICAL INSURANCE
FREE LIFE INSURANCE
AUTOMATED RETURNS ON
ALL COMMERCIAL TRANSACTIONS
+ have PERFECT TRANSACTION TRAIL
& ACCOUNTABILITY

A NEW INDIA
 FRAMEWORK
FOR AN ECONOMIC SYSTEM
THAT WILL HAVE
● PERFECT ACCOUNTABILITY
● TOTAL EASE OF ACCEPTANCE
● AUTOMATED DIRECT BENEFIT
FOR ALL
WITHIN THE COUNTRY
 BHARATH BHIM
A NATIONAL AUTOMATED FINANCIAL TRANSACTION &
ACCOUNTING SYSTEM LINKED TO AADHAAR & THE
EXISTING BHIM & UPI PLATFORMS

A Radical
(Non) Taxation Proposal to
Revolutionize Industry
Mindset & Life in India
 BHARATH BHIM
WILL HAVE
3
COMPONENTS

Indian National DIGITAL Fund (INDF)

BHIM applications
NSE-BHIM
 1st COMPONENT
Indian National DIGITAL Fund
● All Financial Transactions done on the BHIM multi-platform applications
(Web/Tablet/Phone/Debit/QR Cards) constitute the Indian National
DIGITAL Fund (INDF).
● INDF will give the precise Net Value & Transaction trail of all Digital
Transactions happening within India.
● Eventually all transactions are expected to become Digital and INDF will
represent almost the entire financial transactions happening in the country.
● All Digital transactions happening in the country happen within INDF
through banks, using BHIM applications on the existing UPI system.
 2nd COMPONENT - BHIM applications
● BHIM applications will be multi-platform unified applications -
Phone/Web/Debit Cards/QR Cards.
● A Unique Bharath BHIM account linked to the Aadhaar of the Individual.
● There will be 3 types of BHARATH BHIM accounts -
MyBHIM, C-BHIM, K-BHIM
● MyBHIM - (For the Individual) - will be a Personal Individual Account.
● C-BHIM - (Commercial BHIM) - For Companies - Commercial transactions
will be done through the company’s/proprietor’s C-BHIM accounts.
● K-BHIM - (Kisan BHIM) - Certified Farmer transactions will be done
through K-BHIM accounts of farmers.
● MyBHIM + C-BHIM/K-BHIM can be there on the same phone/QR/Magnetic
card.
● C-BHIM and K-BHIM will also be linked to GST numbers.
 3rd COMPONENT - NSE-BHIM
● The NSE BHIM component is composed of the value of the
CREDIT available within BHIM.
● The Credit available within the 3 BHIM accounts is
segmented within a section called DD and the DD part of all
accounts can be traded as a scrip - NSE BHIM
● NSE BHIM Scrip can also be traded in the Stock Markets
either as a individual scrip or as a component of NIFTY & the
growth of NSE BHIM will bringing proportionate return for all.
 THE TRANSACTION SYSTEM
After explaining the framework of the Transaction System, the
THE PRACTICAL INCENTIVES & BENEFITS TO PEOPLE
and the way CREDIT is routed
TO MAKE MUTUALLY BENEFICIAL TRANSACTIONS
between
GOVERNMENT on one hand
and
CITIZENS & INDUSTRY on the other
without the need for cumbersome TAXATION
is explained
 For all Commercial Transactions
done through the BHIM applications -
(from buying things in small shops like chocolates, biscuits, bread, tea, coffee,
provisions etc to making big business transactions)

Both the Maker and Receiver

of the payment will instantly receive a credit of

10% each,
for their transacted value, into their MyBHIM, C-BHIM or K-BHIM accounts.

The transaction map to execute this is first explained &

the way it is made practically possible is explained next.
 The general transaction map
Individual A can transact money to Individual B, using their
respective MyBHIMs. However, person to person transactions dont
get credit but will be eligible for a TAX FREE STATUS
How this can be made possible is explained later

● The AADHAAR number can be the BHIM

account number also.
● This will greatly simplify things and also provide
simple, widespread accountability. So MyBHIM will
function against the Aadhaar number
● All C-BHIMs will be linked to an Aadhaar + GST No.
 The BHIM Application Accounts

All MyBHIMs & K-BHIMs

will have 4 simple Sections with them
DR, DD, MIA, LIA

All C-BHIMs have 2 sections within - DR & DD

● DR is a DIGITAL RUPEE Account, like a Wallet through which all
Day to Day transactions are done.
● DD is a Digital Credit Deposit Account - the Automated Tax
Reversal & Credit Account into which Government credits go to.
● So, all day to day transactions happen through the DIGITAL RUPEE Account
of each individual & all credits received go into the DIGITAL DEPOSIT Account
● The other 2 accounts are explained later.
 How can the Government give 20% credit
for all transactions through BHIM
Understanding where the 20% comes from
● All Financial transactions happening in India that come under GST
(all slabs including 0% GST) will be the core of the BHARATH BHIM
automated credit routing system. Generally all commercial transactions
will fit into this.

● All Financial transactions that do not come under GST will also come
under the BHARATH BHIM as a favoured transaction mode, but will not
be part of the credit routing process. So salaries will be paid through
BHIM establishing perfect accountability but this transaction will not get
credit as its not a GST item/transaction.
 How can the Government give 20% credit
for all transactions through BHIM
● When a Commercial Financial Transaction is done
through the BHIM application -

● A uniform rate of 20% GST is proposed for

all products but with an automated way to
immediately return a credit value back to the
BHIM accounts of the transactors.
● ANY transaction executed through BHIM will
automatically have TAX FREE status.
 How can the Government give 20% credit
for all transactions through BHIM
● A Seller sells an item with 20% GST and instantly receives back 10% as
credit into his DD in the BHIM application. The Buyer who buys this item
also instantly receives 10% credit into his DD.

● The 10% + 10% credit that is now available in the DD accounts

of the SELLER and BUYER is instantly, automatically &
continuously available to the GOVERNMENT for a period of 1
YEAR, after which, the credit will be available as DIGITAL
RUPEE to the SELLER & BUYER, for use within BHIM system
and it automatically comes back into the DD accounts when
further transactions are made and stays in the LOOP.
 How can the Government give 20% credit
for all transactions through BHIM
● So, Credit given to the TRANSACTORS for a 1
Year period is the Credit available to the
Government for the 1 Year period.
● In addition to the credit returns, all transactions
done on the BHIM platform will be TOTALLY
TAX FREE - Free from Personal Income Tax &
Corporate Tax. This wil ensure that industry
itself will rush to implement this system.
● In short ~ 20% is the GST for all products sold in India (instead of the
current 0%, 5%, 12%,18% and 28% ), if the transactions are done
through BHIM.
● When the product is sold through the BHIM system, both Seller & Buyer
will each receive an AUTOMATED credit of 10% of the transacted value.
● Since both receive uniform credit, BOTH will have an equal incentive to
use the BHIM system to transact.
● Since BOTH enjoy a COMPLETE TAX FREE STATUS on this BHIM
transaction, it will definitely be their PREFERRED TRANSACTION
MODE.
● Since there will also be no need for further GST filing on these
transactions, as they are already clearly accountable, industry will
also take it up instantly + government will also automatically benefit.
 20% credit
for all Commercial transactions done through BHIM ~ Explainer
DD - DIGITAL DEPOSIT ACCOUNT
The Automated Tax Reversal & Credit Account

● All Credit given by the Government to the BHIM

accounts, go into the DD Account, through the
automated process.
● The Credit in the DD account remains as credit
within the Account for a 1 year period.
 20% credit
for all Commercial transactions done through BHIM ~ Explainer
DD - DIGITAL DEPOSIT ACCOUNT
The Automated Tax Reversal & Credit Account

● Any amount in the DD account CANNOT be used

directly by the individual/company/farmer for the
period of 1 year. It will show as CREDIT available
to them for the 1 year period.
● This amount can be used by the Government for
that 1 year period.
 20% credit
for all Commercial transactions done through BHIM ~ Explainer
DD - DIGITAL DEPOSIT ACCOUNT
The Automated Tax Reversal & Credit Account

● After 1 year, the DD credit will be available to the

individual/company/farmer as DIGITAL RUPEE for use
within BHIM for all BHIM related transactions.
● When the DIGITAL RUPEES are used again, the credits
keep going back into the DD for every transaction, for the
next 1 year period.
● Thus, the entire money transactions in India
FLOW within a beneficial accountable LOOP.

● Companies can focus on running their

businesses well & in expanding & becoming
global players instead of worrying about paying
or avoiding TAX.

● Government can focus on maintaining

infrastructure & planning instead of going
behind tax evaders
● So, the Government will not actually have to give the
money back to the Individual for a period of 1 Year.
● Government will have the credit from the DD accounts
of all Individuals/Companies/Farmers in India, at their
disposal for use, as a LIVE FUND.
● Thus, 20% of all money transacted daily in India will be
available to the Government for a full 1 year CREDIT
PERIOD.
● Due to COMPLETE TAX FREE status & additional
CREDIT benefits, it will be adopted all over India easily.
● Absence of Personal Income Tax & Absence of
Corporate Income Tax for transacting through
BHIM will in itself be a huge incentive for People
& Companies to conduct their entire activities
using BHIM.

● The additional benefit of getting 10% back for

each commercial transaction will be another
unmatched benefit for both the Individual and
the Companies.
 SIMPLICITY OF TRANSACTING THROUGH BHIM

● People only need to carry a QR card/BHIM Debit card/Mobile phone for

transacting. Shopkeepers only need to have a phone with them.
● What can be simpler & more ATTRACTIVE to a lay person than to go to a
shop and buy something for Rs.100 and immediately receive Rs.10 back into
his account as credit? What can be simpler to the shopkeeper than to sell
this item to the lay man and also receive Rs.10 as credit into his account?
● If every transaction during the day instantly facilitates this for both, the
system will be INSTANTLY accepted.
● Buy milk in a petty shop for Rs.20 receive Rs.2 as credit into the account. Shop
selling same milk for Rs.20 also receives the same Rs.2 credit into their BHIM.
● Go to KFC and eat for Rs.1000, pay using BHIM and gets Rs.100 as credit into his
BHIM immediately. KFC receives payment of Rs.1000 through BHIM and gets
Rs.100 as credit into their BHIM.
 SIMPLICITY OF TRANSACTING THROUGH BHIM
● Go to a TV shop and buy a TV worth Rs.1Lakh using BHIM and receive
Rs.10,000 as credit into BHIM immediately. TV shop sells the TV for Rs.1Lkh
through BHIM and receives Rs.10,000 as credit into BHIM immediately.

● Buy a BMW i8 for Rs.2.6crores and receive a credit of Rs.26Lakhs into the
BHIM immediately. BMW showroom sells this i8 for Rs.2.6crores and receives
a credit of Rs.26Lakhs into the BHIM immediately.

● Right now, if you buy a milk packet in a petty shop, you dont get anything back,
but if you buy through BHIM for a month, you will get Rs.60 into your account,
and the shopkeeper also receives Rs.60, both, simply for making this
transaction through BHIM.
● The entire money given as credit is also available to the Government for a
period of 1 year. No need for both to bother with all the taxation issues.
So, if you consider the below 4 transactions ~
● You buy a packet of milk from a Petty Shop for Rs.20
○ Both you & Seller receive an automated credit of Rs.2 each
● You go to KFC and eat for Rs.1,000
○ Both You and the Outlet receive Rs.100 each as an automated credit.
● You go to an Electronic store & Buy a TV for Rs.1Lakh
○ Both You and the Store receive Rs.10,000 each as an automated credit.
● You Buy a BMW i8 for some Rs.2.6crores
○ Both You & the BMW showroom receive Rs.26Lakhs as credit.
In these 4 transactions, Government receives
Rs.52,20,204/- as credit available to them for a period of
ONE FULL YEAR
+
The transactors will also have their credit returns which they will otherwise not
receive through other modes of transactions so far + the entire transaction is
TAX FREE in every way.
 C, D, W, S
Uses MyBHIM Company / Dealer /
A
to Buy Wholesaler /
Common Manufacturer
a product From
Man Sells to A using
20% common GST for all Products sold in India C-BHIM

A receives 10% Both these 10%s or a total of Seller receives 10%

automated credit on 20% will be available for Government automated credit on
this transaction to use for 1 year this transaction

This 10% goes into Since 20% of every transaction done in This 10% goes into the
the DD Account of the country will thus be available DD Account of C,D,W or
A’s MyBHIM where it automatically to the Govt., Ss C-BHIM where it will
will show as available there is no need for show as available credit
credit for 1 year Personal Income Tax, Corporate Tax for 1 year

After 1 year the Credit in the DD becomes DR of A,C,D,W & S & the cycle repeats

No Personal Tax, No Corporate Tax, Govt receives 20% of Each Transaction, Everybody receives
automated DD credit, No GST filing, No Tax Filing ~
Whole of India will be a Vibrant Economy with Full Automated Accountability
● Thus, Individuals & Companies are likely to
make all transactions through BHIM.
● BHIM based transactions will increase
exponentially.
● Government will have 20% of all transactions for
them to use for the whole year & this volume
will only rise.
● The credit given back after 1 year, will again
come back into the credit loop for the
government, in no time.
 DD - BANK OVERDRAFTS & Personal Loans
● Banks should give ANNUAL Personal Loans and Overdraft
facility under favourable terms, for the probable amount that
can be available in the DD accounts.
● This will be another additional benefit, specially for
companies who can have large amounts of credit available in
their DD accounts.
● This will also be an additional benefit for Banks as it will also
be a SAFE LOAN directly linked to DD accounts.
● These Loans & Overdrafts will be given only as DIGITAL
RUPEES and its usage will of course return credit back to
the DD accounts.
 DD - NSE BHIM scrip
● The net value of all DD credits held in India can be traded in the
FUTURES/OPTIONS segment of NSE as NSE BHIM.
● The value of DD credits is going to go up as more & more people transact
using BHIM. The NSE BHIM scrip will gain value.
● In fact, the entire value of holdings in all the BHIM accounts in India -
MyBHIM, C-BHIM, K-BHIM can also be considered as the value of NSE BHIM.
● Alternatively, we may also consider trading the NSE BHIM as one of the
permanent components of NIFTY. Trading NSE BHIM within NIFTY will also
give a solid boost to the value of NIFTY & it can strongly represent the
vibrancy of our National Economy.
● It will also enable traders to focus on NIFTY as a visible dynamic national
index.
 DD - NSE BHIM scrip
● Since the value of NSE BHIM is likely to rise, a proportionate
return can be worked out to credit the DD accounts.
● So, the money that is remaining in the DD accounts should also
fetch everyone some interest based on the NSE BHIM growth
values.
● Like having money in a fixed deposit and gaining interest, the
DDs should also give automated return at the end of a year,
based on the value of NSE BHIM at the end of a financial year.
● So, the people of India, specially farmers, will also have another
additional source of income just by transacting on BHIM.
 To Sum Up
● 20% GST for all products sold in India through BHIM
● Transaction through BHIM gives Tax Free Status + zero or minimal GST filing.
● Any individual, company, farmer, simply by making commercial transactions
through BHIM, will receive 10% credit for every transaction.
● 20% value of all commercial transactions within the county will always be
available to the Government for their Budget, to Rotate, as an automated
process with minimal effort and without the trouble of tax filing etc.
● People & businesses get their 10% credit as spending money after 1 year.
● Traders can trade the NSE BHIM Scrip & money transacted through BHIM, in
this process, will also generate good income.
● All Transactions within the country go through a fully accountable,
automated DIGITAL LOOP that benefits all.
● As of now, 50% of the daily economic activity is NOT EVEN ACCOUNTABLE
and the TAX RECEIVED BY THE GOVERNMENT currently IS ONLY
PROBABLY AROUND 20% OF THIS 50%
TAX FREE NATION
NO PERSONAL INCOME TAX
NO CORPORATE TAX
 In Tax Free India,
if the GDP is worth
$2Trillion,
20% of this value should
be available to the
government for its
budget with minimal
effort and hassle for
anyone, which is more
than the current budget
& as a result of the ease
of doing business, the
economy will leapfrog
ADDITIONAL BENEFITS ON THE BHARATH BHIM

COMPLETE INSURANCE
FOR ALL IN INDIA
As indicated earlier, the MyBHIM
account also has within it
2 other sub-accounts
○ MIA - Medical Insurance Account
○ LIA - Life Insurance Account

Government can provide Insurance

to all Indians
without spending a single Rupee
 Credit routing for the MIA & LIA
● Every transaction through BHIM credits 10% into the DD
account.
● The 10% should first be routed through the MIA for paying the
Annual Medical Insurance Premium for a Basic Medical Insurance
Plan.
● When the MI Premium is covered, further DD credits get routed
through the LIA to cover the Life Insurance Premium.
● After both the MI & LI premiums are covered, all further credits
remain within the DD accounts.
● As a further incentive, for encouraging people to take up
BHIM, the first year’s Premium can be given free.
 Credit routing for the MIA & LIA
● Medical Insurance & Life Insurance can be serviced through the existing
companies in the market.
● By working out a deal with these companies, the Government can also use
the money available on all MIAs & LIAs in India for rotation.
● If anybody wishes, they can directly pay the full amount of both the
Insurance Premiums through BHIM and immediately start their Insurance
periods. This will permit the 10% credits from BHIM transactions to go
directly into their DD account.
● People can also choose other Insurance plans beyond the Basic Plan
offered by the Government, as they wish, and can have the money routed
similarly for all their transactions - 1st to the MIA, then to the LIA or directly
to the DD.
 Credit routing for the MIA & LIA

● The same features of the MyBHIM account

should be available in K-BHIM accounts.
● Hence all K-BHIM accounts will have the DR,
MIA, LIA and DD.
● C-BHIM accounts will not have MIA and LIA.
They will have only the DR and DD.
 AREN’T
● NO PERSONAL TAX
THESE
● NO CORPORATE TAX
ENOUGH
● 10% CREDIT FOR
REASONS
EVERY COMMERCIAL
FOR THE
TRANSACTION
COUNTRY
● MEDICAL INSURANCE
TO
● LIFE INSURANCE
TRANSACT
● RETURNS THROUGH
THROUGH
NSE BHIM
BHIM?
 VIRTUALLY NO GST

NO GST FILING

NO CORPORATE TAX
FILING

NO PERSONAL TAX FILING

 EASE OF DOING BUSINESS
● India will be THE No.1 COUNTRY in the
WORLD for EASE OF DOING BUSINESS.
● India will also become a prefered destination for all
Global companies to set up shop, without additional
inducements, simply on the basis of our huge market &
the absence of TAX.
● Indian based companies can be global corporate leaders
and owners. After all, we already head corporations in
Western countries
 BETTER STATISTICAL MANAGEMENT

● Since MyBHIMs are linked to Aadhaar and

C-BHIMs & K-BHIMs are also linked to GST
No., precise Data Management of the entire
Economy will become a Reality.
● Accurate Consumer spending data will be
available to manage all statistics precisely.
 SETTING UP THE C-BHIM IN MINUTES
● Existing companies should be able to get their C-BHIM
accounts against their existing GST numbers.
● Individuals wishing to do business just need to open their
C-BHIM accounts through their BHIM applications which will
give them an auto-generated GST No. linked to Aadhaar. This
process should happen within 5 mins.
● Slogan - Just 5 Minutes to start doing
Business in India.
● C-BHIM accounts will enable them to sell products whereas MyBHIM
will permit them only to BUY & transfer between MyBHIMs.
 Digital Proprietorship Registrations (DPR)

● A separate category of GST no. can be had for this-maybe linked as

Digital Proprietorship Registrations (DPR)
● This category should cover all small traders like small petty shops,
flower sellers, tea sellers, pan shops, vegetable sellers, egg sellers etc
who are individuals doing their own small business.
● They dont need to do any annual filing as long as they transact through
BHIM. They can transact through QR cards/Debit cards/Phones etc.
● This is the current unorganized, unaccounted sector. So, this
system will get them organized and accountable, atleast as far as
financial transactions are concerned.
 NO GST
Digital Proprietorship Registrations (DPR)

● They dont even need to have a smart phone to conduct their business. A
BHIM QR card can be carried by them to receive and make payments into
their accounts. Through OTPs/PINs/SMS confirmations, they can make
and receive payments.
● This section that comes within the DPR is the section that is likely to
create and sustain an informal economy. So, there should not be any
unnecessary rules & blocks that will hinder them from becoming part
of the Digital Economy.
● The 20% credit that the Government can receive from each DPR
transaction will be a huge figure. The DPR itself can cover half the
GDP.
 NO GST
Digital Proprietorship Registrations (DPR)

● These small businesses will also receive all the benefits-10%,Complete Tax
Free Transactions, free MI & LI through MyBHIM+credits from their personal
as well as commercial transactions.
● Current proprietorship registrations can be converted to the DPR.
● Through a simple application report, they can have figures available on their
phones, either as sms or a screen report such as -
○ Total Money received - for the Day
○ Total Expenses - for the day
○ Total Money received - Month to Date
○ Total Expenses - Month to Date
○ Money received - Year to Date
○ Total Expenses - Year to Date
 FDI through BHIM
● Foreign Direct Investment into India should also be made
100% Tax Free by routing it through BHIM, and C-BHIM
of the company.
● Since there is no tax, the performance of their
companies and investment will be directly related to their
own ability to run their companies. Hence, no other
concessions should be given to them.
● The best managed companies & the availability of the
best technology from around the world will also be a
dynamic job provider for the economy.
 Overseas Money remittance through BHIM

1. All general personal payments from outside India should also

be routed through the BHIM gateway, only through
MyBHIM/C-BHIM/K-BHIM. When the Banks receive the
transfer, it can be withdrawn only using the BHIM
2. Cash remittances to the individual through Money Exchanges
etc will have to be banned completely. This will ensure that
mischief makers will be accounted for.
3. Money Exchanges should transact only through BHIM.
 C-BHIM Stock & Sales Management
● BHIM application should be able to issue/transfer/receive electronic GST invoices
directly to MyBHIM/C-BHIM/K-BHIM accounts.
● The BHIM platform with C-BHIM should be able to generate Sales invoices
against stock received. So, it should serve also as an automated online stock
management and billing system linked to GST HSN codes.
● This should greatly help small & medium businesses who can transact through
the phone itself. Bigger business can link their stock & billing systems through
BHIM
● Any item sold against a GST No. within the invoice issued by a C-BHIM seller
(say D Dealer) to C will appear as stock in the C-BHIM of C (company).
● When C sells items to A/B, it will exit his stock and will also show as a bought
item in the MyBHIM of A/B. So, A/B can also have a searchable/sortable
database of BOUGHT ITEMS but not as a stock items.
 C-BHIM Stock & Sales Management
● C will be able to select the item from his stock displayed within his
C-BHIM, when he chooses Invoice mode within his C-BHIM.
● C can scan the QR code of A to bill it to A
● When A/B make payment to C through their MyBHIM, they will receive the
invoice from C into their MyBHIM.
○ Government can collaborate with Existing accounting & billing platforms to
maintain the stock and sales system.
○ Government’s role should be to ensure that all transactions happen within
the BHIM and GST link so that the revenue system in place will be
maintained smoothly.
○ Supermarkets & Retail chains should be able to link their billing & invoicing
through their C-BHIM & for payment using MyBHIM,C-BHIM,K-BHIM
 C-BHIM Stock & Sales Management
● C-BHIM can be designed to function as a robust Stock & Sales
Management system of the Nation.
● Like the Indian Railways Ticketing system, the Stock, Sales, Billing
and Movement of Goods & Services in the country can be
managed & tracked effectively through appropriate servers.
● We will be able to have Live Statistics on the way India does
Business.
● Using the Latest BlockChain and AI systems, we can
have the BEST Finance + Stock & Sales Network
in the world.
 ZERO Minimum Balance Banking
● All Bank accounts should be made as ZERO Minimum
Balance accounts.
● Typically, the money is going to be maintained in Banks as usual, and
the transactions done through BHIM, either directly or by transferring
DR-Digital Rupees of the BHIM.
● Banking system will be the fundamental backbone of the Financial
Transaction system of the country with the BHIM being the network to
execute the transactions.
● The volume of transactions done through banks is also going to increase
substantially. The system of doing all transactions through BHIM will also
ensure that all Indians have and USE their bank accounts.
 ZERO Minimum Balance Banking
● BHIM Magnetic/QR cards can be used for transacting the DIGITAL
RUPEES. Using these cards or the BHIM application, money can be
transacted back and forth between BHIM & Bank account.
● The DR will thus also add an extra layer of security to their bank
accounts since only the necessary amount needs to be transferred
to their BHIM Debit/QR cards/DR whenever required & the Bank
accounts dont need to be directly exposed for all regular
transactions.
● With so many natural advantages, its only fair that all Bank
Accounts are zero balance accounts.
 Maintaining the BHIM system
● It will not be practically possible for the government to maintain the front
end of the BHIM system by offering good customer care services on a
daily basis.
○ Hence, Government should only provide the BACKBONE for it, the
Front end and the Back end should be maintained by Banks
and suitable Service Providers like Payment Banks, who can run it
efficiently from a citizen/user’s point of view.
○ The Government need not also take the trouble or responsibility of
running it by engaging directly with customers daily.
○ Government should only govern the complete system, provide the
necessary security & count their (Digital) cash :-)
 Maintaining the BHIM system
● The AADHAAR No. itself can be the BHIM account number.
● All existing Banks, Payment Banks and Wallets can be the
Front End. The E-Wallets, Payment Banks & Bank Debit cards
should all be linked to the BHIM account number.
● They can issue DR QR cards and integrate their banking
applications with BHIM.
● A Bank BHIM application can also be an alternate for the Govt.
BHIM application.
● They can function as they are doing now but all Digital
Transactions should be routed through BHIM so that every
user will get the credit into their DD account for every
transaction done.
 Maintaining the BHIM system
● The E-Wallets and all other Service Providers should function
within the Guidelines issued on BHIM, by the
Government/RBI.
● The RBI and Government should ensure that the best
infrastructure is provided to support seamless transactions
across India on BHIM considering the number of people and
transactions that are going to be made through it. Nothing
short of best in the world should be our forever goal.
● In fact, in this case, we should be setting the standard
for what can be considered as the Best in the World.
 K-BHIM
● The K-BHIM will be a huge opportunity to bring the
entire agricultural sector fully & directly into the
System.
● For the first time, the Farmer will also have an additional
source of Income, just by transacting through BHIM.
● The K-BHIM can be designed to accommodate all the
assets of the Farmer, including Land, Cattle and
Machinery.
● Every transaction through K-BHIM brings all the benefits to
the farmer as in the other accounts - C-BHIM & MyBHIM
 K-BHIM

● An inefficient farmer is of no use to himself or to the

society. We have more or less taken it for granted that
Farmers are suffering and hence loans have to be waived.
● People are foolish enough not to think that it is their money
that is being used to pay for these Loan waivers.
● On one hand, the farmer is burdened due to expenditure
on pesticides, fertilizers etc & then a loan waiver racket is
played out. Neither Farmer nor Nation benefits from these.
 K-BHIM
● The British Environment Secretary, Michael Gove has warned-Parts of
Britain’s farmland are just 30 to 40 years away from becoming barren
wastelands - http://www.dailymail.co.uk/news/article-5014541/Farms-wasteland-just-30-years-says-Gove.html This is
the state of a country that has enough rainfall every year to wash away
harmful pesticides & fertilizers.
● Hence, the focus should be on developing efficient farming practices that
nurture the soil and support revival of local water bodies & streams. Till 150yrs
back, we had completely self-sustaining farming communities supplying food
and spices to the whole world.
● Farmers should be incentivized based on their maintenance of soil health,
water health & productivity.
 K-BHIM
● The K-BHIM system should be designed so that all the
necessary monitoring systems are available to the farmer
on his Phone.
● This should help both the farmer and the government
monitor the efficiency of farms
● Our entire research & resources should be focussed
on using the most modern efficient systems to
develop wholesome organic farmlands that we leave
as a lasting legacy for our future generations.
 INTERNET INFRASTRUCTURE FOR BHIM

● Access to the BHIM infrastructure should be made available

FREE across all service providers and formats-Mobile Data,
Fixed Line Broadband etc.
● Since everyone is likely to use BHIM, everyone is bound to
have Internet Connection sooner or later. Hence, these service
providers will benefit in multiple ways.
● Hence, the BHIM application should be given free Internet
access, across all platforms.
● This must be legislated as one of the requirements for
being a service provider.
 PROPERTY REGISTRATION THROUGH BHIM

● Special Rates for Property Registration -

○ For property transactions now, the system itself
gives rise to the possibility of black money
generation.
○ Eg.If a property has a market value of Rs.1Crore,
and the current guideline value is Rs.60Lakhs, the
registration of the property is done according to
the guideline value and the rest of the amount can
become black money.
 PROPERTY REGISTRATION THROUGH BHIM

● Under the BHIM system, the registration charges should be very minimal
because the objective is to get the bigger amount fully into the system.
● ALL PROPERTY TRANSACTIONS TO BE DONE ONLY THROUGH BHIM
● Any property sale value should AUTOMATICALLY include 20% GST. This will
be a GST Inclusive Invoice. So 1Crore or any property Sale Value will include
20% GST. It is not a certain value+20%; any declared sale value will be with
20% GST inclusive.
● Buyer & Seller will receive 10% each, of the Sale Value into their DD accounts
which will be available to them after 1 year, for use within BHIM.
● So, the whole value of the Property comes into the INDF. Government gets to
use 20% DD amount (Rs.20Lks here)
● The Transaction becomes Tax Free as a further incentive + net DD values go
up.
 Rental Transactions & General Transactions through BHIM
● Similarly, for Rental and similar Transactions like House Lease,
Commercial Spaces etc, an AUTOMATED GST INCLUSIVE invoice can be
issued through C-BHIM.
● The Advance Payment for the Rented/Leased space can have a 20%
inclusive amount into whatever the Advance Amount is.
● A rent paid can have a similar 20% GST amount as an AUTOMATED
INCLUSIVE AMOUNT.
● Eg. A Home Rent of Rs.10,000/month will have the 20% GST amount
automatically built into it under a Rent Category. When the rent of
Rs.10,000/- is paid, Rs.1,000 each goes automatically into the DD account
of both Payer and Receiver.
Based on these, a typical Basic Household expense payments through BHIM & gains are
shown
 Monthly Credit Monthly Credit
General Monthly expenses of a Basic Household, Annual Credit Annual Credit
Monthly Expenses Return to Payer in Return to receiver i
Billed through C-BHIM with 20% GST Return to Payer Return to Receiver
DD account DD account
Rent collected with 20% GST 10,000 1,000 1,000
Phone Bill like Jio 150 15 15
Electricity Bill 500 50 50
TV channels 200 20 20
2 Lts Petrol @Rs.75//day for 30 days 4,500 450 450
Groceries 10,000 1,000 1,000
Cooking Gas 1cylinder for month 700 70 70
Total Monthly Monthly GST Monthly GST credit Annual GST Credit Annual GST Credit
Expenditure of Basic Credit into Payer's into Receiver's DD into Payer's DD into Receiver's DD
Household DD account account account account
26,050 2,605 2,605 31,260 31,260
Annual Expense Monthly Availability to Govt Annual Availability to Govt.
312,600 5,210 62,520

If Advance for the rented house is paid through

BHIM with 20% GST included 100,000 10,000 10,000

Total Money available at the end of one year, to a basic householder just by transacting through BHIM 41,260 (31,260 + 10,000)

General Money available to the Government by a Basic Householder transacting through BHIM for 1 year 82,520 62,520 + 20,000
 A BASIC HOUSHOLDER GAINS SIMPLY BY
TRANSACTING THROUGH BHIM

● Simply by transacting all the basic household expenses and utilities

through BHIM, a basic householder gains.
● On a general basic annual expense of around Rs.4Lakhs, the
householder receives around Rs.40,000 at the end of the year.
● The Householder DOES NOT receive ANYTHING for these
transactions as of now.
● The Householder may not even receive an invoice/acknowldgement
for his House Advance or Rental amount.
● Government receives around Rs.80,000 for the year through these
transactions of a SINGLE HOUSEHOLDER. EVERYBODY GAINS
 ANNUAL FILINGS UNDER BHIM
● For DPR accounts, no filing is required.
○ The annual statements already available in the BHIM application can
be electronically approved.
○ Thus even rental transactions can be done as a DPR tansaction and
if anybody wants to buy or sell things through OLX type platform,
they can have DPR accounts easily and transact through C-BHIM to
receive their 10%
● For Corporate, Private Ltd accounts, Annual CA Audited filing of BHIM
statements can be done.
● Companies & Individuals can give an online Legal undertaking that there
have been no Non-BHIM financial transactions.
● All Non-BHIM transactions are taxable & should be filed in the current
way within the current applicable tax structure.
 APPLICATIONS AROUND BHIM
● Applications can be built around BHIM to serve most basic
necessities. Simple Aadhaar/GST linked invoicing through the
BHIM application in the Phone, is the primary requirement
● An Autorickshaw that is not part of OLA Auto can have a simple
Invoice generator that is linked to Google Maps that will give the
trip distance, rate based on trip distance.
● Invoice will be a 20% GST Inclusive Invoice
● Transactions completed between C-BHIM & MyBHIM to get the
necessary credit. OLA cabs can issue BHIM invoices.
● Similar apps can be developed for simple basic transactions for
vegetable sellers etc where a QR card based transaction happens
with the automatic addition of 20% GST.
 India Investment Fund (IIF)
● A separate India Investment Fund (IIF) should be set up as a
component of INDF, which can replace the role of Tax Free
Havens in the world.
○ The only requirement is that they should maintain their funds
in India only through IIF.
○ They should have complete constitutional guaranty for their
funds.
○ Most big companies in the world have figured in the
Paradise papers leak. It is only natural for Companies to
want to use their funds most profitably and efficiently.
 India Investment Fund (IIF)
● These funds should come to India for a noble cause.
● The IIF can be used for building Infrastructure that most of these companies
can also make use of, for their own businesses in India.
● So, unlike putting it in useless Tax Havens, they will have purposeful as well
as profitable activity here.
○ They will come here if there is constitutional guaranty.
○ Once they come in, they have enough reasons to increase their own business
presence in India which will again translate into the best technology coming to
India, more jobs etc
○ This combined with the Tax Free status through BHIM will be a historic
opportunity for both the country and them.
○ When most corporations from USA, CHINA, ISRAEL, UK & EUROPE are
functioning here profitably, we will not be having undesirable issues
with those countries!!
 India Investment Fund (IIF)
● Tax Free status of the Indian Economy & the Huge Market that we have
should should get the best of the best, in everything, into India.
■ All new products and technology should be launched in India.
■ The world should get it from India.
● We can even consider giving them interest on par with what they get in
Western Economies.

● They should not be given any special

privileges.
■ They should be here to do business in the proper way for our Mutual
Benefit.
 India Investment Fund (IIF)
● They can pull out their money from Swiss Bank type places and park it in India.
When the money of the world is kept here, we will automatically have
security!
● These places got their money and wealth initially by looting others but in the
process they became Developed countries and Rich countries & have been
dictate terms to us & also laid down laws across the world.
● Now, we have to play their game smarter than them and if its done, over the
next decade, the whole of India will be transformed.
● We already have the skilled labour force, an educated work force, and
Qualitative difference will happen with the presence of more Money, in the
country.
● India should regain its position of having atleast 1/3rd of the world’s GDP.
 RF-Retirement Fund
One additional component can be added to BHIM - People can
start saving for a Retirement Fund. This can give the
Government an additional Fund Pool. It can be worked out like
this -
● At the end of the 1st year, credit is available from DD to DR.
● People can be given a choice of putting it in an RF account within their
MyBHIM/K-BHIM~either 25% or 50% or 75% or even 100% of it.
● They can choose a period of 10/20/30/40 yrs for this at a better rate of interest.
● Money in the RF will be available to government for this period.
● People will have their savings and security taken care of at old age.
● This fund can also be part of NSE BHIM.
● People can also contribute directly to it - from DD to RF, if they wish.
RF-Retirement RF-Retirement
Fund Fund
● Government will thus be flushed with funds from multiple sources,
daily, with minimum effort, and can focus on developing the best
infrastructure for the country.
● We should move to a fully ‘Made in India’ Economy.
● Instead of procuring defence equipments, we should eventually be
making all of it & exporting and making money there also.
● All together, the engagement between people and government should
be productive both ways from the start of their productive life till the
end of it. The RF will probably complete the engagement.
● So, the Government, people and economy work together and
form a strong bond for a new generation for creating a new
Dynamic India that Leads the World.
● Apparently Cash still accounts for 70% of India’s
Total Transactions by Value.
● India’s payments market which is worth less than
$200 billion now, is expected to touch $1 TRILLION
by 2023 but is nothing in comparison to China’s
current $5 TRILLION market.
● A shocking statistic is that a MILLION Indians
reach employment age EVERY MONTH and more
than 93% of workers in India are currently
employed in the unorganised sector.
● People are still expecting Government to
provide jobs and job creation remains one
of the biggest challenges.

● Changing the mindset of the people is

important. Government cant be expected
to be a job provider.

● Unless the business environment opens

up in our country, we are going to have
some tough times ahead.
 Bharath BHIM
is an effort to address 2 important
necessities -

Accountability in financial transactions

as well as
Creation of a FREE & Vibrant Business
& Entrepreneurial Environment.
The concept & the framework given here
should be worked out technically, with
the right economists, to build the
world’s first, fully inclusive,
dynamic, digital economy.

If we have a headstart in this, we will be

able to surge ahead as a country &
regain our pre-eminence as a civilization
The best part of this is - this system can be
executed side by side with current cash
transaction systems.

However, Government will need to be

prepared for a huge surge in the volume of
transactions and on execution day, the
BLOCK CHAIN SERVERS should be fully
ready to handle transactions of
the entire nation
BHARATH BHIM

JAI HIND