Myth 1- In next round PM Modi will demonetise Rs. 100 and Rs. notes.

Reality- There is no such intention and demonetisation will not be done for any other denomination of legal tender notes.

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Myth 2 – Select corporate houses and political party members were informed about the move in advance

Reality– There was no leakage of information at all and complete secrecy was maintained.

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Myth 3- The next step is going to be seating bank lockers & freezing gold /diamond jewellery.

Reality- This is entirely baseless. There is no plan  whatsoever of sealing bank lockers or freezing jewellery.

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Myth 4- New currency notes have chips embedded inside them that will help in tracing black money holders.

Reality- No such chips are embedded in the new notes and this is just some creative rumor mongering.

Demonetization Myths Busted - Myth 4

Demonetization Myths Busted – Myth 4

Myth 5 – The demonetization move will not benefit, black money holders will find other ways to store cash.

Reality- Enforcement agencies are keeping a strict watch on all possible hoarders and instances of hoarding. Also, amendments have been made in Benami Transactions Act and information sharing agreements made with foreign Governments.

Demonetization Myths Busted - Myth 5

Demonetization Myths Busted – Myth 5

Myth 6 -The quality of new Rs 2,000 notes is not good and the colours are coming off

Reality- The new currency notes have a security feature called intaglio printing. A genuine currency note can be tested by rubbing it with a cloth; this creates a turbo – electric effect, transferring the ink colour onto the cloth.

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Myth 7-  The cost of implementation in this move is more than the benefits

Reality- Legitimate money is completely safe. Money earned through legitimate means but taxes not paid on them (black money) can be declared with taxes and penalty paid on them. Illegitimate money or crime money hoarded in cash will be completely wiped out. Counterfeit money will be completely wiped out.

Demonetization Myths Busted - Myth 7

Demonetization Myths Busted – Myth 7

Myth 8- For withdrawal of own money, a person will be marked with indelible ink

Reality- Indelible ink marking will only be for cash exchange at bank counters and not for withdrawals.

Demonetization Myths Busted - Myth 8

Demonetization Myths Busted – Myth 8

Myth 9- India is not prepared for digital economy as only a limited number of Indians have bank accounts

Reality- Since the launch of Jan Dhan, in 2014, more than 25.5 crore bank accounts have been opened. Considering average family size of 4.5, almost every Indian family is covered by a bank account.

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Myth 10- Future generation of black money will not stop.

Reality- With implementation of GST from 1st April 2017, strict benami properties laws, extinguishing of Mauritius round-tripping loophole , new Rear Estate sector laws, and fear of action setting in, future black money generation will be seriously curtailed.

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Myth 11- Color photocopies of Rs 2000 notes are circulating, as no one has seen them before

Reality– Advertisements have been released in the media, to generate awareness of the Rs 2000 bank note design. Designs available also on websites of RBI and Ministry of Finance

Myth 12- Govt is going to introduce demat format for all land records, which will make all paper records useless

Reality– Digitization of land records, to prove title, is an ongoing process; Government continues to support this process

Myth 13- ID card photocopies are being misused by bank employees to change money for rich people

Reality– All banks have requisite monitoring mechanisms in place; malpractices, if any will be suitably dealt with.

Myth 14- Cooperative banks are being used to convert black money into white

Reality– State Cooperative Banks and Urban Cooperative Banks, which are regulated and supervised by RBI, have been empowered to exchange the old notes. These banks have the necessary safeguards to check any such malpractices

Myth 15- If indelible ink is applied, one cannot withdraw money for a long time in future

Reality-Use of indelible ink has been introduced to screen out persons coming repeatedly to exchange notes, so that banks can serve a larger number of customers.

Myth 16- Govt. has silently withdrawn order allowing people to withdraw higher amounts for marriages & farmers

Reality–  No change in relaxations for farmers and weddings. ONLY Technical correction re-issued under notification No. 3407 instead of 3408

Myth 17- 10 rupee coins with rupee symbol are fake

Reality– Both designs – with and without rupee symbol ‑are genuine

(Republished with 7 More Myths)

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8 responses to “Top 17 #Demonetization Myths Busted”

  1. Sam says:

    Myth 13: It’s not a myth. I am working in a firm (being a Chartered Accountant Firm) where my boss have some sort of influence over public & private sector banks where they have used photocopies of IDs & exchanged their black money as well as some of their clients.The mechanisms whatever are in place are not sufficient enough. Something has to be done to deal with this malpractice as the mechanism of using indelible ink will not work in this place.

  2. Ganeshram says:

    It will be very effective , if these details are put in Social Media like whatsapp, facebook etc
    Pl and Kindly do needful and spread the message
    Warm Regards

  3. Mukund Kumar says:

    Great. Rumours should be stopped.

  4. AUK says:

    All nice. But the “Reality” of Myth 9 appears to be “Myth”
    Extremely good work done but ALL Families in India have a Bank Account may be too optimistic.

  5. S.SRINIVASA RAO says:

    The replies to the baseless routers and myths are very interesting and informative. People are able to update the genuine information
    Thanks
    SRINIVASA RAO

  6. Raghavan Sampath says:

    An honest efforts by Modi. Thanks for the info.

  7. S Balasubramanian says:

    Thanks for illuminating the myths and replies.

  8. mlarora_53@yahoo.co.in says:

    Thanks for furnishing such an excellent information. I shall be obliged if I could do something for the nation.

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