Why is RBI issuing the new Rs 2000 notes ?
- To eradicate the black money and illegal money hoarding
- Cannot find any official gov information for GPS chips – “Using state of the art nano technology GPS every Rs 2000 currency note issued will be embedded with a this chip and can be traced.” Take that info with grain of salt
How Nano GPS tech embedded in notes works ?
- Internet’s explanation
- Unique feature – is it dosent require any power source to operate
- Works as a signal reflector
- Satellite sends signals requesting location, the nano GPS chip reflects the signal along with the serial number
- Nano chip can’t be tampered / removed without damaging the notes
- My engineering logic
- Signal will be weak and may not be able to reflect data
- Expensive to embed that technology in notes
- A bit of digging, found that OriginGPS Nano Spider measures 4*4*2.1 mm is available and uses similar technology as mentioned for the currency notes
- So not sure if it is true
- If gov has gone and implemented such a thing its a fantastic move made
Will this help reduce corruption and hoarding of black money ?
- Internet’s Explanation
- Now that the notes can be tracked, satellite can identify the amount of money stored at a certain location
- When significant amount of money is found a certain location for an extended period of time, this info can be used to track down hoarders
- Fact Check
- Issuing new notes will definitely bring down black money hoarding and reduce corruption to an extend
- As older notes lose their value, hoarders cannot legitimately convert them over night to new notes, which means they will be left with pecies of paper that don’t hold value
Down side of this implementation ?
Other sources will be exploited, hoarders will now invest on gold, silver, other precious metals and other sources.
So do expect
– Increase in demand/price of precious metals
– Increase investments in land/property
– Hoarding of other commodities such as grains and other raw materials
As of now there seems to be more upsides than downsides to implement this. Waiting to see how this will pan out
Image source – whatsapp group