I had a dream that I applied

for the CEO post in

God’s Phygital Bank

Year 2022

Aittreya S Ramanujam

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I had a dream

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My LinkedIn Posts-
Post One

Reinventing Banking as Non- Interest Banking with Alternate Income from Real Economy.

Dream Bank

I had a dream. A real dream and not a wishful thinking while being awake.

This morning I had a strange wakeup call at 3.00 AM IST. Like many, I too had the habit of switching on
computer to log in to my social media accounts - LinkedIn, Face book and Twitter.

An advertisement popped up in LinkedIn and disappeared in few minutes.

I decided to write it before I forget. I start writing the advertisement in LinkedIn as a post and nearing
completion suddenly I pressed wrong keys and failed to save the draft. I had to rush again to write the
dream as the content appears to fade.

God wants to start a Neo bank - why the word neo- it is modern and denotes digital. But God's Neo Bank is
Digital and Physical Bank.

The advertisement is to find a CEO for the Bank.

He places an advertisement in LinkedIn between 3.00 AM IST and 4.00 AM IST. Why this Time. God has the
habit of rewarding early risers. Why IST- Because the dreamer is from India.

God places his requirement for the Bank

1. The bank will be a universal bank. It will function in all the countries. Necessary licenses will be issued.

2. The banks will accept money from all nations as deposits - i.e., currencies of all nations will be accepted.

3. The bank will have to back it with tangible assets for all the currencies accepted by default.

4. The bank will have a method to preserve the value of such assets at a given point of time.

5. The bank will enable seamless payments across all nations as it is a universal bank without any difference
in value as that of transaction happening within borders.

6. The bank will be undertaking lending activity.

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7. The bank will not add money to money based on time for both the depositors and borrowers.

8. The bank will identify alternative revenue model to make it commercially viable as the bank will be a
global commercial bank.

The advertisement ended with a note to watch this space every day between 3.00 AM IST and 4.00 AM IST
for any additional inputs more for remuneration.

Anyone can apply for the CEO Post, need not have a marquee degree - PhD or any. Need not have been a
CEO. Anyone with a solution can apply.

As a student of commerce and auditing with exposure in financial services for over three decades in bank
audits, non-banking financial activities, credits, capital and commodity markets, have been out of
employment from March 2020 - Corona Contribution.

Eligibility requirements really enticed me and I decided to take the plunge.

History of money is interesting as it gives chance to everyone and here is an opportunity for me to become
a CEO of a Bank which I am not eligible to dream even in a dream.

The million dollar question is how many would have seen this advertisement ?

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Reinventing Banking as Non-Interest Banking with Alternate Income from Real Economy. & Asset Backed
for Savings & Time Deposits-

Post Two

I had a dream. God advertises for CEO to his Neo Bank- Phygital Bank. Whoever has solution for Non-
Interest Banking can apply.

Why did God want a Non-Interest Bank?

Simple. The most vital requirement for Life - Air- Water - Land- Space were given free to All Species to
equally enjoy. Today everything has a price. Above all even intangible Time has a price. Humans have found
a way even to sell time and called it Interest. through a medium called Money.

First law of motion states that everybody continues to be in its state of rest or uniform motion unless and
until it acted upon by an external force. So, God decides to intervene and always intervenes through
humans as it is the best specie on planet earth as of date.

Why Non-Interest Banking- Because after Air, Water, Land and Space, Money is the most important which
influences every human species. So, he decides to fix the aberration in the functions of money chiefly
interest.

Why does God wants to fix it? Simple. Interest is value added to money based on time and time is not
owned by any human species and not in the control of any human species like Air, Water, Land and Space
and God decides to act. This time God decides to fix all aberrations he has found in the concept of Wealth
or Asset based on Air, Water, Land and Space and the best way to fix it will be Money which is the medium
and measure of it.

God decides to use the best of resources presently available and floats the Universal Phygital Bank-Physical
and Digital integration.

Physical denotes all assets created by God from the Earth and the Earth Itself.

Digital as of date is global integration of communication network.

Phygital bank will have simultaneous operation in all parts of the world with the same operating system.

Now back to Money- Money is well defined as (a) Measure of Value (b)) Standard of Value (c ) Store of

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Value (d) Medium of Exchange.

Has the present format of Money functioned as defined, then the ills spoken by the learned economists and
money managers would not have been present.

Time has come to reinvent Banking- the most important advancement made by the mankind for the
functioning of global economy.

Where to Start- Obviously with a CEO for the new floated Commercial Universal Phygital Bank.

Hence the advertisement for the CEO Post

Today without alarm I woke up at 2.50 AM IST and switched on the Computer and logged into LinkedIn

A pop up appeared. God has added an input.

9. The Phygital Bank being a Universal Bank accepting all national currencies and backing it with Assets-
should be inclusive and function under the Central Banking System- The solution should not be
independent from the Present Central Banking and Commercial Banking System.

Why this Condition?

For obvious reasons-Money should not be from Private Hands.

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Reinventing Banking as Non-Interest Banking with Alternate Income from Real Economy. & Asset Backed
for Savings & Time Deposits-

Post Three

I had a dream. God advertises for CEO to his Neo Bank- Phygital Bank. Whoever has solution for Non-
Interest Banking can apply.

Why did God want the present Central Banking Model to be the Nucleus for all Banking activity?

History has enough examples even from the last two centuries what happens when money is left in private
hands.

Gresham's Law will stand true for all times. Bad money will always chase out good money.

We have recently seen the mass hysteria for crypto currencies which had emerged with too many tall claims
using legitimate words to color it Viz., Mining, Digital Gold, Decentralized Finance justified to have value
because of finite numbers. Cryptos are infinite and not one and are just a store of digital character masked
by a query to give validity.

For the last fifty years post gold standard, the biggest argument against National Currencies is the intrinsic
value and its infinite availability without checks and balances. This has been cleverly manipulated by the
new digital world building castles in digital spaces. Needles to mention the faces of the architect of this
deception as part of illegal order.

When we forget history, we will be forced to repeat the mistakes. Instead of plugging the holes in the
present system which itself is a product of experiments, evolving a new system for medium of exchange will
only have a blind end.

What is now required is to identify methods to provide intrinsic value to the National Currencies and move
forward.

In a dynamic world, we need to have leverage without curtailing the ability of Central Bank's to issue notes.
Obvious that it cannot have asset backing at the time of issuing. Hence it needs to acquire value post
issuing. This cannot be done by Central Banks as it does not directly deal with end user and functions
through Commercial Banks.

Here in lies the solution for obtaining intrinsic value for the notes issued. Either issues note against existing
assets or obtain assets using issued notes. The net result is the same.

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Central banks holding assets makes no sense as it will be nonproductively held. Hence holders of national
currencies are its citizens, and it makes sense if the assets are held by them and commercial banks enabling
it.

The next million-dollar question will be what can become the assets?

Our present financial system has Central Banks, Commercial Banks, Capital Market Exchanges, and
Commodity Market Exchanges. In this system Commercial Banks play the pivotal role for efficient use of
money.

The ills of present commercial banks is, it functions for generating profits and to do so it commits excesses.
In such events Central Banks are forced to prop it up, the bone of contention for capital providers is Profits
are not shared with citizens but losses are done. This dichotomy needs to be addressed.

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Reinventing Banking as Non-Interest Banking with Alternate Income from Real Economy. & Asset Backed
for Savings & Time Deposits-

Post Four

I had a dream. God advertises for CEO to his Neo Bank- Phygital Bank. Whoever has solution for Non-
Interest Banking can apply.

Why God wants Commercial Banks to be Socially Responsible?

Money is the prime reason for many to seek God. Eighty percent of the prayer is mostly done for wealth.
Next to God and Central Banks, commercial banks create money with the fractional reserve banking system.
It becomes imperative for the Creator to regulate the Creators of money to play a beneficial role.

In the last one hundred years the major upheavals in financial markets have stemmed from the excesses of
Commercial Banks.

Stock Market Crash of 1929- Banks breaking their fiduciary responsibility of managing public deposits,
invested indiscriminately in Capital Markets propelling stock prices artificially high finally crashing. This gave
to Glass - Steagall act which largely regulated commercial banks till the end of the century.

Glass Steagall Act was repealed in 1999 by Gramm- Leach Bliley Act and what happened in the next ten
years is history now. We now have Dodd Franck Act to protect depositors from the excesses of commercial
banks.

The more the law, the more the ingenuity to break it. It is often said that the law breakers are ahead of the
curve.

Greed overpowers everything.

Time to evolve a model in banking at least to some extent to work on self-regulation and protecting
consumers from the over enthusiastic bankers stretching the public resources in their race for profits.

Lending is an essential activity in any economy and involves uncertainty. Even when lent with due
precautions carries risk. Needless to mention when done indiscriminately. Subprime Crisis and toxic assets
from NINJA Loans are standing example.

Taking recourse to assets generated out of lending is like letting the tiger out. Hence this needs to be
addressed at the root.

Commercial banks look at security while lending. Why not the same apply to Depositors and Investors while

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placing their money in any commercial bank. Why should trust be the only component.

The root of all evils is clean money i.e. unsecured money. Time for commercial banks to work for providing
security to depositors and investors. The excesses are committed by commercial banks and risks passed on
to the depositors. This anomaly needs to be addressed and once this is plugged commercial banking will
become more socially responsible.

The CEO of the envisaged Phygital Bank needs to have a solution for this problem and is one of the prime
requirement for the post.

Life time savings of everyone is-placed with commercial bank and it becomes the fiduciary responsibility of
the bank to safe guard the money to the last penny and not with deposit insurance which protects a small
value.

Sad to note that depositors are already a victim of Central Banks What is It ?

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Reinventing Banking as Non-Interest Banking with Alternate Income from Real Economy. & Asset Backed
for Savings & Time Deposits-

Post Five

I had a dream. God advertises for CEO to his Neo Bank- Phygital Bank. Whoever has solution for Non
Interest Banking can apply.

Why Does God feel Depositor's as Victims of Banks especially Central Banks ?

Eight major functions of central bank (1) Bank of Issue, (2) Banker and Advisor to Government, (3) Custodian
of Cash Reserves, (4) Custodian of Foreign Balances, (5) Lender of Last Resort, (6) Clearing House, (7)
Controller of Credit, and (8) Protection of Depositor's Interest.

Protection of Depositor's Interest should have been the foremost function of the Central Bank and all its
activities should have been centered around it.

Unfortunately Central Banks have become Protectors of Government Follies as Bank of Issue and By
Protecting the Excesses of Commercial Banks as Lender of the Last Resort.

Central Banks appear to be an Independent body and function as advisor to governments and as regulator
control credits. In both the functions it has miserably failed.

Year 2007- There were enough warnings about subprime crises and NINJA Loans; The FED kept repeating
ALL IS WELL.

Year 2008 - US Election Year- Markets went for a toss and Sitting President and Presidential Contestants
were forced to accept for a bail out.

For full two years markets were pumped artificially, building value just with natural numbers as it is infinite
without rationality. The players were Commercial Banks and Spectators were FED & US Government and
Victims were Depositor's and Investors.

The lesson from the immoral story is if an individual promises and does not keep his promise it is a
punishable offense. But if likeminded individuals join and promise and fails- it deserves to be saved. This
applies to governments too. If a monarchy does it - he gets banished. But in democracy it is a collective loot
and hence no one gets punished, and spoils are shared between the players,

Central Banks have blatantly failed in their role to protect Depositors Money and are now being questioned
for their need. In short neither the governments nor the central bank exist to protect the wealth of the

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citizens. All Democratic Governments and Central Banks have miserably failed.

In India Fifty years back ie 1972 merely reaching a four figure salary made a bachelor eligible get married.
i.e. 1000. With that money he can run a large family, help his relatives, and still save. In short, he was rich.
Year 2022- adding two zeroes i.e., 100,000. He is not a eligible bachelor to get married. This money will at
the most give necessities and getting married has become a dream.

What happened? My father worked for forty years and his last drawn salary in 1972 was 1100. He felt he has
saved enough for his family. and last days. Just twenty years - 1992- He could not pay his monthly house
rent which reached 1000 -

Story of Victim to continue

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Reinventing Banking as Non-Interest Banking with Alternate Income from Real Economy. & Asset Backed
for Savings & Time Deposits-

Post Six

I had a dream. God advertises for CEO to his Neo Bank- Phygital Bank. Whoever has solution for Non-
Interest Banking can apply.

Why Does God feel Depositor's as Victims of Banks especially Central Banks?

My Father- a representative of hardworking and honest taxpayer’s after working for decades, against all
odds saved for his rainy days finally found that his entire life's earning lost for no fault of his. He had his
money in the bank, but it did not help him to have his necessities. A self-made man finally had to depend
on his children much against his wishes and passed away with regrets.

This is the story of every common man who saves and keeps his cash in a bank as deposits.

Banking has mastered the art of leaving the shell in the hands of the depositors.

Economists will explain this in a language which many cannot understand. The only science which looks for
solutions in the past. Every science has benefitted from hindsight and progressed. Economics is yet to give
any solution. It just does data analysis and finds remedy with the same tools which were the cause of
hardship.

The plight of depositors gets exacerbated when unable to find credible alternative and finally falls prey to
scamsters. The only difference between savings in a bank and losing money in scams is in the former he
holds the money but loses its value and, in the latter, he ceases to hold the money. The net result is the
same. He will have nothing. The world dismisses this as an outcome of Greed without addressing the cause.

In the four centuries of recorded history and nation states, from Tulip Mania to Present Crypto Mania, there
are innumerous scams. Most of it were done with licenses. From South Sea bubble to recent Sub Prime
Crises.

What is the remedy?

Money to qualify as means of exchange should be a store of value.

Providing compensation which has no relevance to reality in the name of interest is no solution. It only

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multiplies like a virus and finally destroying.

The writing on the wall is clear.

Welfare States on the one end, Bail out States on the other, Corrupt states omnipresent, the attack on the
common man money is worser than Corona Virus.

It is time a solution is found, Economists read history perfectly and now with data can analyses the causes
very well. But when it comes to solution resort to a means which starts the vicious cycle once again.

Political Masters need chaos for their survival. More the chaos, more the division in the society, more the
merry.

How can a common man save the value of his labor?

Modern Financial Services has Central Banks at the center of all actions, Commercial Banks intermediate
with Citizens, Capital Markets deals with future assets and Commodity Markets deals with present assets.

Irony all regulated.

A solution needs to be found within this? God's Wish.

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Reinventing Banking as Non-Interest Banking with Alternate Income from Real Economy. & Asset Backed
for Savings & Time Deposits-

Post Seven

I had a dream. God advertises for CEO to his Neo Bank- Phygital Bank. Whoever has solution for Non-
Interest Banking can apply.

God's Wish - What is It?

In India a say goes that even the tiniest life is fed. Unfortunate human species faces hunger and the data is
painful.

Is it the mistake of God? There is enough food grown but not distributed leave alone the daily food waste
done in affluent countries.

We call our earth as Global Village but still one good meal a day is a luxury for many. We have still not
ensured food security to our co humans?

How is this related to banking? Especially Commercial Banking?

We have many goals now: SDG -ESG and every government is aiming it.

To reach the goals faster, Commercial Banks can play a larger role. Personally, in my view only commercial
banks can be the enabler.

How?

By inducting commodities as assets in Asset Backed Banking which in turn will enable Non-Interest Banking.

Enough is written about interest and its ills. Adding to the woes is printing of notes for the commissions and
omissions of political masters and commercial banks.

As to political masters- it is better to be silent,

As to Commercial Banks, any activity resulting in profits and if it can add value to the eco system will be
glad to undertake it.

It is easier to find solutions through Commercial Banks for the macro and micro economic ills given the
relationship. with citizens,

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What is the Solution?

Inducting Commodities as Assets to back Savings and Time Deposits?

Central Banks cannot hold assets as its functions are restricted to Government and Institutions.

Commercial Banks can back every deposit with assets. With a method to maintain the price of Commodities
will have twin benefits- One arresting the inflation and two giving intrinsic value to deposits.

Every branch of Commercial Bank can act as Community Bank participating in local economy and having a
revenue model from real economic activity which will be more profitable than interest.

Asset backing model for deposits will enable Commercial banks to service depositors and borrowers with a
mutually beneficial relationship and strengthening banking.

The idea is not new excepting the risk management for price at any given time and shifting the playground
from central banks to commercial banks.

This is the dream I had as God looking for a CEO who can give working model for Asset Backing to Savings
and Time Deposits and Non Interest Banking.

A comprehensive solution can emerge meeting the SDG's and ESG's despite political woes in the event
Commercial Banks adopt this into their functioning.

Before dismissing the idea as impossible, looking at what has been achieved by humanity in the last one
hundred years, it will be worth debating the solution proposed.

More inputs in

https://lnkd.in/ggCVRpvP

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