7 Demonetization Myths Which Are Doing The Rounds

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The Government of India on November 8, 2016 took a brave step to demonetize the Rs 500 and Rs 1000 currency with an aim to fight corruption and black money.

When few people were busy exchanging their old notes, some people are spreading news which are only myths and are creating panic among Indians.

The government of India has requested not to believe such rumors and create awareness.
Here are 7 demonetization myths and rumors to be avoided.

7 Demonetization Myths Which Are Doing The Rounds

Myth 1: PM will address the nation again, announcing demonetization of Rs 100 & Rs 50 rupee notes.

Reality: Baseless; there is no intention of cancelling legal tender status of notes of any other denomination.

Myth 2: Information was leaked to select corporate houses and party members in advance.

Reality: Complete secrecy was maintained; no leakage of Government's intention to any selection.

Myth 3: The Implementation cost is more than the benefits.

Reality: Parallel economy corrodes and eats into the vitals of the country's economy, adversely affecting the poor and middle class more than others.

Myth 4: The demonetization move is only for the show. People will find other means to keep black money. Already industries and mechanisms are springing up to address this demand.

Reality: Enforcement agencies are keeping necessary watch; besides, amendments made also in Benami transactions Act and information sharing agreements with foreign government to check black money.

Myth 5: New notes have chip embedded in them to trace black money hoarders.

Reality: No such chips are embedded in the new notes.

Myth 6: The new Rs 2000 notes of inferior quality; their color comes off.

Reality: Currency notes have a security feature called intaglio printing. The first test for a genuine currency notes is to rub with a cloth; this creates a turbo-electric effect, transferring the ink color onto the cloth.

Myth 7: Next step will be to seal bank lockers & freeze gold, diamonds, jewellery.

Reality: There is no such proposal for sealing the bank lockers or freezing jewellery.


Read more about: currency ban
Story first published: Friday, November 18, 2016, 11:42 [IST]
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