The Prime Minster of India, Shri Narendra Modi on 8th November, 2016 (Tuesday) announced that the Rs 500 and 1,000 notes will be invalid from the midnight. This means the new Rs 500 and Rs 2,000 notes would be in circulation and as per the RBI the same would be out by November 10th. It is because there are lot of fake 500 and 1000 currency notes in the market and it is causing endless problems for RBI to confiscate all of them. The best way is to introduce a new currency denomination which is difficult to create replicas. The Reserve Bank of India (RBI) will be issuing Rs 2,000 currency notes, the highest to come into circulation. This was supposed to be one of the biggest news for banking sector, financial institutions and the common man – because it involved India’s largest currency denomination, Rs 2000. In 1938, and then again in 1954, then Governments introduced currency denomination of Rs 10,000 which was later put out of circulation in 1946 and 1978 respectively. If we leave aside Rs 10,000 currency, then Rs 2000 would be the largest denomination in the history of India. Soon after reports emerged that Rs 2000 currency notes would be introduced by RBI, another set of rumors emerged that these notes would be embedded with nano-GPS chips which can be traced all over the world.
Rumor only, no confirmation from GOI till now.
The Rs 2000 currency might be designed keeping in mind to eradicate the black money issues using state of the art indigenous nanotechnology, every Rs. 2000 currency note will be embedded with a NGC (Nano GPS Chip). The unique feature of the NGC is that it doesn’t need any power source. It only acts as a signal reflector. When a Satellite sends a signal requesting location the NGC reflects back the signal from the location, giving precise location coordinates, and the serial number of the currency back to the satellite, this way every NGC embedded currency can be easily tracked & located even if it is kept 120 meters below ground level. The NGC can’t be tampered with or removed without damaging the currency note. Since every NGC embedded currency can be tracked. The satellite can identify the exact amount of money stored at a certain location. If a relatively high concentration of currency is found a certain location for a longer period of time at suspicious locations other than banks & other financial institutions. The information will be passed on to the Income Tax Department for further investigation and action. As the new notes are loaded with nano-GPS chips (NGC) which will enable the Govt. to easily track these notes, hence controlling black money transactions. NGC chips are actually ‘signal-reflectors’ which would help satellites to track the location of the notes – even if they are ‘120 meters’ below ground level. The logic is that, the satellites will track heavy accumulation of such NGC enabled notes, and will take immediate action to track and seize such money (assuming they are black money).