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

Modi, Shah 'forget': Gandhi’s first Satyagraha was against citizenship law of South Africa

By Nachiketa Desai*
Hindu fanatic Nathuram Godse assassinated Mahatma Gandhi once on January 30, 1948 but his followers raising the war cry of ‘Jai Sriram’ are killing the Mahatma every day. In his home state of Gujarat, Gandhiji was killed a thousand times in 2002 when over 2,000 Muslims were butchered, their women raped, homes and shops plundered and set on fire and even unborn babies ripped out of the wombs of their mothers.

Union Budget 'moves away' from Right to Education, 1.3 lakh schools closed down

By Dr Aparajita Sharma*
It was a shocking reply by the Union human resource development minister to a question raised in Parliament on closure of schools in a country where lakhs of children are still out of school. On December 2, the minister, Ramesh Pokhriyal ‘Nishank’, told Lok Sabha that the NITI Aayog’s education project, Sath-E, has led to 35,996 schools of different levels being merged in Madhya Pradesh, 4,312 in Jharkhand and 1,803 in Odisha. NITI Aayog is the Central Government’s policy think-tank.

CAA-NPR-NRC will 'target' 99% homeless, who are without birth certificates: NCU

Counterview Desk
Claiming to base on a survey in five states (Andhra Pradesh, Bihar, Jharkhand, Maharashtra and Tamil Nadu), which finds that over 99% of the homeless people do not have birth certificates, a civil rights organization which networks activists, researchers, urban practioners, lawyers, informal sector workers, has claimed that the Citizenship Amendment Act (CAA), as also the proposed National Register of Citizens (NRC) and the National Population Register (NPR), are likely to adversely impact this section the most.

Modi 'warned': Will not remain silent when women are labelled terrorists and traitors

Counterview Desk
As many as 13 women's rights organizations and 162 individuals have issued an open letter to Prime Minister Narendra Modi stating that in the light of hate speeches during Delhi elections, especially directed against women, it is his "Constitutional duty to protect all citizens" and tell his partymen "to fight the elections in a manner that upholds the Constitution, not one that increases the fear and insecurity among women."

Savarkar 'criminally betrayed' Netaji and his INA by siding with the British rulers

By Shamsul Islam*
RSS-BJP rulers of India have been trying to show off as great fans of Netaji. But Indians must know what role ideological parents of today's RSS/BJP played against Netaji and Indian National Army (INA). The Hindu Mahasabha and RSS which always had prominent lawyers on their rolls made no attempt to defend the INA accused at Red Fort trials.

Law 'governing' world's tallest Statue of Unity refers to local tribals as occupiers

By Rohit Prajapati, Krishnakant*
The recently enacted Statue of Unity (SoU) Area Development and Tourism Governance Act, 2019 in Gujarat comes amidst a terrifying atmosphere of intimidation, house arrests, detentions and FIRs, not to mention the overarching implementation of Section 144 across the state.

Anti-CAA: Mallika Sarabhai joins students, faculty to protest dy CM's 'divisive' talk

By Our Representative
Taking strong exception to deputy chief minister Nitin Patel’s statement against those protesting against the Citizenship Amendment Act (CAA) and the proposed National Register of Citizens (NRC), well-known danseuse Mallika Sarabhai has joined tens of activists and students and faculty of Gujarat University, CEPT University, Indian Institute of Management-Ahmedabad, Gujarat Vidyapeeth and Nirma University to say that they are seeking “azadi” from the fascist and communal forces of the country.

Mystery around Gujarat PSU 'transfer' of Rs 250 crore to Canadian firm Karnalyte

By AK Luke, IAS (Retd)*
While returning from a Board meeting of the Oil India Limited (OIL) in Ahmedabad some time in 2012, two officers of the Gujarat State Fertilizers and Chemicals Ltd (GSFC), Nanavaty and Patel,  saw me off at the airport. They said they were proceeding to Canada in connection with a project GSFC had entered into with a company there. As we were running late, I hastily wished them the best.

Savarkar in Ahmedabad 'declared' two-nation theory in 1937, Jinnah followed 3 years later

By Our Representative
One of the top freedom fighters whom BJP and Prime Minister Narendra Modi revere the most, Vinayak Damodar Savarkar, was also a great supporter of the two nation theory for India, one for Hindus another for Muslims, claims a new expose on the man who is also known to be the original proponent of the concept of Hindutva.