Skip to main content

Rs 2000 note has radio frequency tracking mechanism: IIM-Bangalore don who advised Modi to demonetize

By Our Representative
While Reserve Bank of India (RBI) has denied as rumours that every Rs 2000 note has a GPS-chip in it, which would be able to tap its movement from a satellite, a top Indian Institute of Management-Bangalore professor, R Vaidyanathan, who was the main brain behind the demonetization move, has said that the new notes do have radio frequency identification (RFID) tags in them.
Vaidyanathan, who was in constant touch with Prime Minister Narendra Modi's national security adviser Ajit Doval ahead of the surprise Modi announcement to demonetize Rs 500 and 1000 notes, has said, the “new notes cannot be easily faked” as the new “Rs 2000 note has RFID tags”, though adding, “The government is not coming forward to announce it.”
Suggesting that this is what he has gathered, Vaidyanathan seems sure, “The new notes have some tracking mechanism in them. ” Vaidyanathan first openly declared the need to demonetize Rs 500 and Rs 1000 notes way back in 2012, which is reportedly the basis of the Modi idea to go for it.
Vaidyanathan, significantly, was part of the task force which the BJP set up on January 31, 2011, to suggest measures to tackle black money. While the task force did submit a slew of recommendations on how to combat the menace, the party in its 23 recommendations furnished in a 95-page report did not refer to the need to demonetize Rs 500 and Rs 1,000 denomination notes.
However, even then, Vaidyanathan had been of the view that there is a need to scrap “high-value notes” as a measure to counter the hoarding of black money, something that he continued to doggedly insist on ever since.
After Modi came to power, he began being consulted more often than other experts on issues of black money. In fact, it is Vaidyanathan’s proposal which found “wide acceptance among the key people involved”, says a report.
He reportedly held discussions with Doval, in which a few senior officials from the RBI too were roped in, and informal discussions began with key bank officials from the public and private sector on how to demonetize Rs 500 and 1000 notes.
In 2012, Vaidyanathan wrote, “If the government wants to reduce domestic black money, it should withdraw Rs 500 and Rs 1,000 notes from circulation”, though adding, it should “replace them with lower denominations such as Rs 100 and Rs 50.”
He insisted, “This can be undertaken in an orderly fashion over a period of say three to four months and all those who possess the higher denominations can exchange it with banking channels for lower denominations. It will automatically bring a huge amount of the funds kept in these denominations into the banking channels.”
Vaidyanathan was of the view, “In our country, cash transactions are more to avoid taxes and generate black money. The higher the denomination, the easier it is to transact and transport. Taking into account our situation, we should evolve laws to prohibit the holding of cash beyond a threshold level and this will go a long way in preventing disbursals for black transactions.”
Hence, he said, “Two steps - demonetising Rs 500 and Rs 1,000 currency notes and creating a threshold limit for cash holdings - will facilitate a reduction in domestic black money transactions. These decisions will not eliminate domestic black money, but will help reduce it to some extent.”
However, Modi did not pay heed to this view, but announced introduction newly designed notes of Rs 500 and 2000, with possibilities of introduction of Rs new 1000 notes, too. It is not known whether Vaidyanathan thinks Modi has done the right thing.

Comments

TRENDING

Call to support IIM-Bangalore professor, censured for seeking action against Uniliver

Counterview Desk
Sections of the Indian Institute of Managements (IIMs) across India have strongly reacted to the decision to censure Dr Deepak Malghan, a faulty at IIM-Bangalore. Prabhir Vishnu Poruthiyil, who is faculty at IIM-Tiruchirapalli, has sought wider solidarity with Dr Malghan, saying, "The administration has censured Deepak for merely suggesting a meaningful action against Hindustan Unilever for their abysmal environmental record" by “disinviting” it for campus placement.

Actionable programme for 2019 polls amidst lynch mobs, caste violence, hate mongering

Counterview Desk
Reclaiming the Republic, a civil rights network, has released a document prepared under the chairmanship of Justice AP Shah (retired) -- and backed, among others, by Supreme Court advocate Prashant Bhushan, bureaucrat-turned-human rights activist Harsh Mander, economist Prabhat Patnaik, Right to transparency activist Anjali Bhardwaj and social scientist Yogendra Yadav  (click HERE for full list) -- with the "aim" of putting forth policy and legislative reforms needed to “protect” and “strengthen” the Constitutional safeguards for India’s democratic polity.

Noam Chomsky, top scholars ask NRIs to take stand on human rights violations in India

Counterview Desk
Renowned world scholars, including Noam Chomsky, James Petras, Angela Davis, Fredric Jameson, Bruno Latour, Ilan Pappe, Judith Butler, among others, have issued a statement castigating the Narendra Modi government for allegedly creating an environment of fear through arrests, intimidation and violence.

India under Modi "promoted" crony business, protected financial fraudsters, fueled bigotry

By Sandeep* and Rahul Pandey**
Narendra Modi's ascension to power was accompanied with jubilation and expectation. His supporters were expecting an end to era of corruption and initiation of good governance which was described as Achche Din. His party's adherence to idea of nationalism was believed to make India a vibrant country and guide India to be a world leader. He gave the slogan of 'Sabka Saath, Sabka Vikas' conveying that his government was for all.
Corruption The government system is infested with corruption. A minimum of 10% is siphoned off from government schemes and projects, some of which goes back to political party in power and remaining is pocketed by various administrative, executive and political functionaries. This corruption continues and has increased. Now an additional Rashtriya Swayamsewak Sangh (RSS) person working as Official on Special Duty or some equivalent position in every government department also has a share in this booty.
The Narendra M…

Inviting Rajapaksa to India "insult" to 1,40,000 Tamils killed by Sri Lankan army

Counterview Desk
In the context of Sri Lankan opposition leader Mahinda Rajapaksa being invited in India, about 75 human rights activists*, claiming to be concerned about rights violations during the civil war in Sri Lanka, especially in 2009, have joined together to express their dissent through a statement.

A Godse legacy? BJP rulers have "refrained" from calling Gandhi Father of the Nation

By Dr Hari Desai*
What an agony! On one hand, the entire India is celebrating the 150th birth anniversary of Mahatma Gandhi under the leadership of Prime Minister Narendra Modi, but on the other side, so-called Hindu Mahasabha members have been found mock-enacting the killing of the Mahatma and celebrating the murder by distributing sweets!

No aadhaar, no ration? Hard blow by Gujarat govt on poor and marginalized

By Pankti Jog*
Only those who have aadhaar registration and linked it with ration card will get ration from a Public Distribution System (PDS) shop. This decision of the Gujarat government has hit very badly thousands of poor and marginalized communities of Gujarat, especially during the drought year.

Post-advisory, Govt of India appears reluctant to ban e-cigarettes, "harmful" to kids

By Rajiv Shah
Is the Government of India dilly-dallying over the issue of banning e-cigarettes, which have been declared by anti-tobacco activists across the world as providing “an entryway to nicotine addiction”, especially among the kids? It would seem so, if the latest developments are any guide.

Poser to Modi: Why is Gujarat not fulfilling Constitutional obligations to minorities?

Counterview Desk
In an open letter, Mujahid Nafees, convener, Minority Coordination Committee (MCC), a Gujarat-based civil rights organization, has accused Prime Minister Narendra Modi on infringing upon MCC activists’ constitutional right to protest. Nafees says, they had no other demands except that the Gujarat government should move towards fulfilling the constitutional obligations towards minorities and international treaties to which India is a signatory.

World Bank needs a new perspective on development, not just a new president

By Maju Varghese*
The resignation of the World Bank President Jim Yong Kim was an unexpected development given the fact that he had three more years to complete his tenure. Resignations at such a high level after bidding for a second term is unusual which prompts people to think what would have led to the act itself.