The citizens of India were bitten by the Demonetization bug on 8th November 2016. The masterstroke of the Prime Minister Narendra Modi was batted, to eradicate the black money. The first step of Demonetization was banning of 500 & 100 rupees notes.
In the hustle-bustle of this revolutionary fiscal strategy, a lot of speculations, claims and allegations, myths and realities are brooding among the people. Let’s demystify some of the myths about the demonetization in India.
In the second innings of Demonetization, the 100 & 50 rupees notes will be banned.
Reality– The government of India has clearly stated that no more ban of notes will be taken up for any denomination of legal tender notes.
The black money cannot be destroyed completely in the upcoming times.
Reality: With a stringent set of property and real estate laws in the upcoming GST Bill in April 2017, the black money can definitely be curtailed.
Demonetization will throng forged currency.
Reality: Out of the 5 Lakh Crore currency notes circulated, approximately 4 lakh crore were fake currency notes, as stated by the RBI. While the black money renewed into white may come into the banking system, how much of the fake currency will get hoed out? If the fake currency is already in flow, it implies that one or two of the notes that you or I deposit in the bank, might be fake.
The government of India may seal the bank lockers and the commodities inside in the near future.
Reality: No such plans or proposals are made by the government. It is a rumoured myth.
The new notes are ingrained with digital chips in order to trace the black money holder.
Reality: This is an imagination of spammers. The reality is viewed by all. No such chips are present in 2000 rupees notes.
The photocopies of the Identification Cards submitted in the Banks are misused to transfer the money of the poor to the rich.
Reality: All banks, government or private are under strict scrutiny and surveillance. Any such act will be legally punished.
Indian is not ready for digitization of the economy, with a large population not holding bank accounts or identification cards.
Reality: After the launch of Jan-Dhan in 2014, the facts state that approximately 2.5 crore new bank accounts have been created. So we are ready for a digital economy when urban and rural people join hands to help each other.
Watch here that How Demonetization Myths Busted: