The surprise demonetisation scheme by the Narendra Modi government has inconvenienced crores of people in the country. More people are troubled in rural areas, as the urban centres have more banks and ATMs. On November 8, PM Modi had announced that old Rs 500 and Rs 1000 notes would cease to be legal tenders from the midnight of that day. Ever since the surprise announcement, several myths about demonetisation have been circulated among people. Some of such myths have even been enforced by Opposition parties and some media reports.
Now, the government has come up with statements to bust those myths on demonetisation. Here are they:
1. Myth: Prime Minister Narendra Modi is soon going to address the nation again, announcing demonetisation of Rs 50 and Rs 100 notes
Reality: This is a baseless rumour. The government has no intention of cancelling legal tender status of notes of any other denomination.
2. Myth: Information was leaked to select corporate houses and party members in advance
Reality: Complete secrecy was maintained. The government’s intention regarding the demonetisation was not leaked to any section.
3. Myth: The implementation cost of demonetisation is more than the benefits
Reality: The parallel economy corrodes and eats into the vitals of the country’s economy, adversely affecting the poor and middle classes more than others.
4. Myth: New notes have chips embedded in them to trace black money hoarders
Reality: This is just a figment of imagination. No such chips are embedded in the new notes.
5. Myth: The new Rs 2000 notes are of inferior quality; their colour comes off
Reality: Currency notes have a security feature called intaglio printing. The first test for a genuine currency note is to rub it with a cloth. This creates a turbo-electric effect, transferring the ink colour onto the cloth.
6. Myth: Next step will be to seal bank lockers and freeze gold/diamonds/jewellery
Reality: This is baseless. There is no such proposal for sealing bank lockers or freezing jewellery
7. Myth: The demonetisation move is only for show. People will find other means to keep black money. Already, industry and mechanisms are springing up to address this demand
Reality: Enforcement agencies are keeping necessary watch. Besides, amendments have been made into Benami Transactions Act and information sharing agreements with foreign governments to check black money.