Economy 2021
10 Demonetization myths & the corresponding facts
10 Demonetization Myths Busted !
Last Updated : Nov. 21, 2016, 11:44 a.m.
On November 8, 2016 Government of India decided to curb 500 & 1000 Rupee notes as an initiative to stop corruption and get hold of all the black money. Since the implementation of the ban on Rs. 500 & Rs. 1000 notes, everyone is equally worried about managing with the saved lower denomination notes.
In the middle of this rush, there are people who are busy spreading rumors! Nowadays, you can easily hear people talking something or the other about the new currency. But, they are nothing more than hoaxes.
Here are the some of the popular demonetization myths that are circulating these days and the factual reality for your awareness:
10 Demonetization myths & the corresponding facts
| S.No. | Trending Myths | Reality Check |
|---|---|---|
| 1 | The government has also decided to ban on Rs. 50 and Rs. 100 notes. | The government has no intentions of changing any other currency or ban on 50 and 100 Rupee notes. This is nothing more than a myth so there is no need to panic. |
| 2 | The quality of new Rs. 2000 note is not good as it leaks color due to improper printing. | New currency notes have a security feature intaglio printing and it creates a turbo-electric effect when rubbed with a cloth. As a result of this, the note leaks color. |
| 3 | To track black money hoarders, a chip has been inserted in new notes. | There is no chip in any notes. |
| 4 | At the time of withdrawal, indelible ink will be applied on a person's hand. | The indelible ink will be applied only at the time of exchanging money and not at the time of withdrawal. |
| 5 | Now the government will seal bank lockers and freeze gold and diamond jewellery. | The government has no plan of freezing bank lockers & jewellery. |
| 6 | Select corporate houses were informed in advance about the ban on higher currencies. | Complete secrecy was maintained and there was no leakage of Government's intention to any selection. |
| 7 | Implementation cost on new notes is more than its benefit. | White money is totally safe and the money earned through illegitimate ways (black money) will wipe out totally. |
| 8 | Demonetization will not affect black money holders and corrupts | After the demonetization, black money holders are scared and they must be as special enforcement agencies continuously keeping an eye on them. Not only this, amendments have been made in Benami Transactions Act and information sharing agreements made with foreign Governments. |
| 9 | Demonetization is not people-friendly for India as not everyone hold's a bank account. | Almost every Indian family is covered in Jan Dhan Yojana (launched in 2014) and the survey says that more than 25.5 crore new bank accounts have been opened. So, keeping money in bank accounts is possible for all. |
| 10 | Black money will make a come back in the future. | As GST is going to be implemented from 1st April 2017, the future generation will surely find it difficult to convert their black money into white. |