This was supposed to be one of the biggest news for banking sector, financial institutions and the common man – because it involved India’s largest currency denomination, Rs 2000.
Way back in 1938, and then again in 1954, then Governments introduced currency denomination of Rs 10,000 which was later put out of circulation in 1946 and 1978 respectively. If we leave aside Rs 10,000 currency, then Rs 2000 would be the largest denomination in the history of India.
Soon after reports emerged that Rs 2000 currency notes would be introduced by RBI, another set of rumors emerged that these notes would be embedded with nano-GPS chips which can be traced all over the world.
Is this news hoax? We will try to find out the truth..
Rs 2000 Currency Notes In India – Facts and Fiction
The Hindu published the first available report of Rs 2000 currency being printed, and about to be launched by RBI.
As per their report, currency printing press in Mysuru has already printed the first lot, and it has been dispatched to RBI headquarters for country-wide distribution.
Soon, this report by picked by social media, and images of the new Rs 2000 currency notes started to circulate. Soon, Twitter was abuzz with images of these notes – a unique shade of pink and white with a new design.
It also spread like wild fire among WhatsApp users – everyone was circulating the Rs. 2000 currency note images. Interestingly, it is not just one image, but a number of different ones have been circulating on Social Media as well as Instant messengers.
1 st in india
? 2000, New Note Relise By Reserve Bank of India pic.twitter.com/AmoHYmfKEJ
— My love is gone (@allusaiharsha) November 5, 2016
New 2000 Rupees notes, will be available in a fortnight’s time
Aur yaha 1000 ka note jeb mein aye arsa ho gaya pic.twitter.com/JJaWog4cFI
— Mohit Gulati (@desimojito) November 5, 2016
Reserve Bank #RBI to issue Rs 2000 currency note in India soon pic.twitter.com/sTOMR5Um6I
— Sanjeev Kamboj (@kambojOffice) November 6, 2016
Some analysts described this move as a mistake, considering that such huge denomination of currency will encourage more cash transactions and black money market can thrive under such scenario. This goes completely opposite to what Govt. has been trying since last few months – encouraging cashless economy.
In fact, at a time when RBI has capped ATM withdrawals because they want to encourage cashless economy, this move seems like a mistake.
However, another set of views describe this step as a masterstroke, as it takes only Rs 3 to print a Rs 1000 notes, and it would take even lesser to print a Rs 2000 note. Lower the denomination, higher are the costs involved in printing them.
Hence, in proportion to the cost involved in printing money, Rs 2000 notes would be the best one.
As of March, 2016, total of Rs 16,41,500 lakh crore worth of currency notes are in circulation in India, with Rs 500 and Rs 1000 accounting for 86% of the total value of the notes.
Fact Check: There has been no official confirmation till date from RBI or Govt. regarding the printing of Rs 2000 currency notes. Considering that it’s an important news, it is indeed surprising that there has been no confirmation. In such a case, we can assume this story to be a rumor, until and unless RBI confirms it.
Nano-GPS Chips in Rs 2000 Notes: Facts and Fiction
After a day of the stories regarding Rs 2000 currency notes, a new theory started being shared across social media: The new notes are loaded with nano-GPS chips (NGC) which will enable the Govt. to easily track these notes, hence controlling black money transactions.
As per the rumors, NGC chips are actually ‘signal-reflectors’ which would help satellites to track the location of the notes – even if they are ‘120 meters’ below ground level. The logic is that, the satellites will track heavy accumulation of such NGC enabled notes, and will take immediate action to track and seize such money (assuming they are black money)
Fact Check: This theory cannot be put aside all-together. World’s smallest fully integrated GPS receiver has been developed by OriginGPS Nano Spider, which measures 4x4x2.1mm. Comparably, this device is smaller than a pencil lead, and can open a new avenue of wearable devices – now this chip can track clothes, watches, electronic appliances and more.
But stating that a NGC can track a currency note, is a bit too far fetched. At a bare minimum, such a device would cost atleast Rs 50 to manufacture, and if Govt. embed every currency note of Rs 2000, then the total costs involved would be too high to even consider the plan.
Hence, we would term this theory as another rumor, which has been attributed to an ongoing rumor of Rs 2000 currency note. As we shared earlier, until and unless Govt. and RBI comes out with an official announcement, we would consider both of these theories as rumor.
In case you have any evidence or proof regarding these two stories, do let us know by commenting right here!