Ever since Prime Minister Narendra Modi announced the Demonetization decision, the market has been filled with all sorts of myths about the decision. Many of them are also doing rounds on social media, thus spreading faster than even the authentic news. However, before you believe them to be true, here is a checklist for you to understand the facts about Demonetization and differentiate them from the myths.
Myth 1: This will clean all the Black money in the country in a matter of a few months.
Reality: As explained in our earlier blog here, https://www.brainbuxa.com/blog/everything-you-need-to-know-about-demonetization this move would only impact the accounted cash in hand of the individuals. This would do little to bring out the unaccounted gold, property and foreign currency held by the people.
Myth 2: The Government's move will fail since there aren't enough Bank account holders in the country to turn India into a digital economy.
Reality: The ambitious Jan Dhan Yojna resulted in opening of over 25.5 crore bank accounts throughout the country in 2014. Thus, it would be safe to assume that almost every family in the country is currently covered with a Bank Account and is thus ready to take the next step towards a Digital economy.
Myth 3: You can only deposit Rs 2.5 lakh in your account without any exemption. Also, you can only make the deposit once since you would be marked with the indelible ink.
Reality: You can deposit any amount in your Bank account as long as the money can be accounted for. You would only land into trouble if you can't disclose the source of the money. Also, even if you deposit a sum less than Rs 2.5 lakh which is unaccounted for, you can be prosecuted by the tax department. The Indelible ink is only being used for the people coming to exchange old notes. It is not used for the people coming to deposit money into the Bank account.
Myth 4: The printing quality of the new Rs 2000 note is very bad and the colours are already coming off the note.
Reality: This is a security feature in the new notes and is called intaglio printing. You can check if the note is genuine by rubbing it against a cloth. This would give rise to a turbo electric effect and would transfer the ink into the cloth against which you are rubbing the note.
Myth 5: The new notes come with a nano chip and can be tracked even if they are stored underground.
Reality: Although some news channel showed this news multiple times, the government has clarified that this is nothing more than a rumour. There is no chip embedded in the new notes!
We advise you to keep your eyes and ear open and not believe everything circulating on the social media to ensure that these myths don't hurt you!
Notes Demonetization India