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BARCODE CURRENCY NOTES IN FUTURE – NECESSITY AND ITS BENEFITS

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Abstract

             The black money, unaccounted money and fake money are obstacles to fastest-growing economies of a country especially the developing countries like India and also reduction in the value of real money. The present study was aimed to propose a new system of advantage of currency notes imprinting with barcode and will it promote the economy of a country. Based on the analysis and review present study concludes that imprinting of barcode in currency notes will be a beneficial step for main economy growth of a Country.

 Key words: Barcode; Currency note; Black currency, Fake currency

 INTRODUCTION

The economy of India is the 7th largest economy in the world measured by the nominal Gross Domestic Product (GDP) and 3rd largest by purchasing power parity [1]. The black money, unaccounted money and fake money are obstacles to fastest-growing economies of a country especially the developing countries like India. Because of the advances in technology of printing, scanning one can easily print fake notes of their own, by this reduction in the value of real money and corruption will also increase. Government runs our economy comes from the taxes paid by the people. When black money eats up a part of this tax, the government deficit increases and in order to balance this deficit by increasing taxes, decreasing subsidies and borrowing. Borrowing leads to a further increase in the government debt. The infusion of unaccounted black money in the economy leads to higher inflation and also increases the disparity between the rich and the poor. When black money are brought out will create employment, uniform wealth across the nation and also increase economy size of the country. Alternatively electronic money like by using debit / credit cards / online banking is better as it saves the cost of printing the currency notes, also avoid fake currency and have accountability. Though Debit/Credit cards being accepted in most of the malls, star hotels but its main drawback is still needs awareness and spread in rural places due to lack of basic infrastructure and literacy rate is 71% which is below the world average literacy rate of 84% [2]. Hence in the paper we are presenting a new proposed system of advantage of currency notes imprinting with barcode and will promote the economy of a country.

 

History of Barcode

In 1968 the Dutch Central Bank was the first issuing authority to introduce machine readable numbers on bank notes and later in 1989 again scored a first when it introduced bar

code numbering on bank notes. Still the Dutch Central Bank is the only bank to register banknotes in circulation on a daily basis [3].

 

About Barcode and its working principle

A barcode is a machine readable representation of data related to the object it is attached or printed to. A barcode reader is used to read these codes in order to track the object throughout its life cycle.  Each character is represented by a pattern of wide and narrow bars. A barcode reader used a photo sensor to convert the barcode into an electrical signal as it moves across the barcode. Then scanner measured the relative widths of the bars and spaces, translates the different patterns back into regular characters, and sends them on to a computer or portable terminal. Every barcode begins with a special character and ends with a special stop character will help the reader to detect the barcode and figure out whether it is being scanned forward or backward. By this barcodes provide a rapid, accurate, and efficient means to collect, process, transmit, record, and manage data. This Barcode reader can be installed easily in Banks, automated teller machine, Smart phones, Hospitals, colleges, schools, markets, shopping places, malls etc everywhere were cash transactions is done by this fake notes can be easily identified,  notes in circulation on a daily can be easily registered.

 

Advantage of Currency notes if imprinted with barcodes

As all the currency are unique such that no currency can have the same Identity and if two currencies do match, one must be a fake which can be easily ruled out from the circulation.

With the bar-coded currency crimes, theft can be easily identified, solved and reduced  in future, as the stolen bar-coded currency are paid for their daily needs in market and other public places by those who stealed can be easily identified or intimated to the respective authorities for declaring those currency notes as non-functional.

As each banking transaction of the barcode currency notes are scanned and details are updated in the core-server for each scanning, by this the barcode currency notes in circulation on a daily can be easily registered.

The Bank details,  Account number and the Place of last transaction of the currency note can be easily traced and by scanning the barcoded currency notes, total number of currency notes could be verified and tallied periodically with total printed and distributed currency notes.

The currency notes which have not been used in certain time duration or interval could be identified and those currency notes can be declared as black currency or hidden currency notes, instead, new unique barcoded currency notes be printed and released, by this those who laundering the wealth to avoid taxation or confiscation will be stopped.

Shadow economy is a not declaring, or under-declaring, a source of income so as to avoid tax and other liabilities. The World Bank estimated about 25% of shadow economy of the total economy in India and this percentage of shadow economy can be reduced by introducing barcode currency notes.

 

Conclusion

Our paper suggest to implement a new technique of barcode in the currency notes will be a beneficial step for main economy growth of a Country, will be helpful to curb the fake notes, corruption and black money or un-accountable money and even to reduce / stop crimes also.

 

BARCODE CURRENCY NOTES IN FUTURE – NECESSITY AND ITS BENEFITS

  1. Manikandakumar1*, K. Gokul Raj2, R.Chidambaram3, R. Srikumar3 R.Vijayakumar3,
  2. Naveen Kumar3 and K. Amirthavalli4

 1Department of  Physics, Bharathidasan University Constituent College, Lalgudi, Tiruchirappalli, Tamil Nadu, India

2Department of Computer Science, Govt. Arts College, Kulithalai,  Tamil Nadu, India

3Centre for Research, Sri Lakshmi Narayana Institute of Medical Sciences, Affiliated to Bharath University, Pondicherry, India

4Department of Economics, Tamil Nadu Open University, Tamil Nadu, India

*Corresponding Author

Dr. K. Manikandakumar,

Department of Physics,

Bharathdiasan University Constituent College,

Lalgudi, Tiruchirappalli, Tamil Nadu, India.

E-mail ID: bioinfokm@gmail.com

 

References:

  1. International Monetary Fund. Retrieved 8 April 2014.
  2. Crossette, Barbara (9 December 1998), “Unicef Study Predicts 16% World Illiteracy Rate Will Increase”, New York Times, retrieved 2009-11-27.
  3. Keesing Journal of Documents & Identity, Issue 20, Pg. No. 2006.
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