Fact vs Fiction: Busting rumours and myths about demonetization

One mega announcement, 9 days, and thousands of hours spent  waiting in a gigantic queue later, the demonetization dust seemed to have settled a bit. And just when the Indian population was slowly and gradually accepting the inconvenience for that amorphous idea of the ‘greater good’, social media happened.

While the common man was struggling to keep up with his demonetized currency notes, trying to exchange/deposit/withdraw – whatever seemed possible at the time – some gossip mongers were going around painting the town red with baseless rumours. These rumours soon gained a life of their own, metastasizing through various messaging and social media platforms, creating unprecedented panic among citizens.

Some were more sinister than others. For example, a memo from the All India Motor Transport Congress that warned of distress in the transport sector started being shared as a call for a national strike by transporters that would cripple all distribution networks, particularly vegetables, fruit, milk, and similar essential goods. 

Another set off panic buying – and opportunistic profiteering – when it claimed that salt and sugar prices had risen multiple times their regular price. This, of course, led to long lines at kirana stores, some of whom decided to make the most of the opportunity. 

But as with all things, it is critical to separate the fact from fiction. Because no, your new lilac coloured Rs 2,000 currency note is not going to bleed pink or purple, and neither does it have a nano GPS chip to track in which part of the world it’ll be spent. 

DNA busts some more rumours and myths about the demonetization as well as the new currency note. 

File photo of traders holding packets of edible salt (Right) and a screen grab showing a Rs 2,000 note bleeding colour (left)

Rumour: The new Rs 2,000 note is equipped with a trackable nano chip.

Truth: The Reserve Bank of India dismissed these rumours on November 16, 2016. Alpana Killawala, spokesperson for the central bank, said: “Such a technology does not exist at the moment in the world, then how can we introduce such a feature?”

Rumour: Many netizens took to Twitter, Facebook and WhatsApp forwarding messages and posts about a nation-wide strike by the transport industry because of demonetization.

Truth: Ministry of Road Transport and Highways clarified in a tweet dated November 12, 2016, saying, “No call for strike by AIMTC. Please do not believe in rumours.”

Rumour: Some decided to spread a rumour about how the salt prices have increased due to demonetization, again largely via digital platforms.

Truth: Nirmala Sitharaman, Union Minister of State for Commerce and Industry tweeted on November 11, 2016: “No shortage in the supply of edible salt. Baseless rumours being spread. Salt Commissioner & Jt. Secretary Shri Raghavendra monitoring the situation. Asst. Salt Commissioners reporting from the field. No shortage. Monitoring will be on-going. Feedback maybe given #mociseva”

Another clarification was issued by Shaktikanta Das, Economic Affairs Secretary, on November 15, 2016. “Have enough stock of salts; no reason for temporary surge in price or shortage; supply of essential commodities being closely monitored,” he said.

On November 11, 2016, Delhi Police also issued an advisory for the same, stating, “Reports have been received regarding spread of rumours about shortage of salt and other essential food items in Delhi and adjoining states. 

These rumours are false and baseless. Citizens are advised to not fall for such rumours and discourage their spread. Action as per law will be taken against rumour mongers found indulging in such mischievous acts.”

Rumour: After the demonetization of Rs 500 and Rs 1,000 notes, the Prime Minister will again address the nation and declare Rs 50 and Rs 100 currency notes as demonetized.

Truth: Ministry of Information and Broadcasting (MIB) tweeted on November 16, 2016, saying, “This is baseless and there is no intention of cancelling the legal tender status of any other denomination of notes.” 

Rumour: The colour is rubbing off the new Rs 2,000 note and it is of poor quality.

Truth: MIB, in a series of myth busting posts on Twitter on November 16, 2016, tweeted: “Currency notes have a security feature called intaglio printing. The first test for a genuine currency note is to rub it with a cloth which creates a turbo-electric effect, transferring the ink colour onto the cloth.” 

Rumour: Reports of violence outside banks and ATMs

Truth: Sanjay Beniwal, Special Commissioner of Police (Operations) said, “We received over 4,000 calls today (before 6pm on November 12, 2016). There were sporadic incidents of violence reported from the city but there were no reports of any grievous injury.”

Simultaneously, was another clarification was issued by Delhi Police on the same issue. “Delhi Police received a large number of PCR calls mostly informing about long queues, long wait, crowding, etc. at banks/ATMs.

Adequate police arrangements in this regard were already in place at banks/ATMs. All these PCR calls were attended to promptly. It is clarified that almost none of these calls were regarding violence. In fact, there was only one instance of minor scuffle at a bank branch in Sabzi Mandi area of North Delhi.”

Rumour: Certain corporates and party members were in the know.

Truth: Another MIB tweet clarified: “Complete secrecy was maintained and there was no leakage of the government’s intention in any section.”

Rumour: Many Indians believe that the end does not justify the means, referring to the inconvenience caused because of a sudden decision to discontinue the Rs 500 and Rs 1,000 currency notes. Since Monday (November 9, 2016) morning, 12 hours after the announcement was made by the Prime Minister, people have been queuing up in front of banks and the ATMs to withdraw cash and get as many currency notes of Rs 100 as possible. 

Truth: “The parallel economy corrodes and eats into the vitals of the currency’s economy adversely affecting the poor and middle classes more than others,” MIB said in a statement.

Rumour: Those dealing in black money will find other ways of doing so, therefore the demonetization drive is ultimately futile.

Truth: MIB’s tweet said, “Necessary watch is being maintained by enforcement apart from amendments in the Benami Transactions Act, 1988 and information sharing agreements done with the foreign governments. 

Rumour: The next step to curtail dealings in black money will involve sealing bank lockers and freezing jewellery. 

Truth: MIB categorically rubbished such rumours. “This is baseless. There is no such proposal for sealing bank lockers or freezing jewellery,” it tweeted. 

Rumour: In Delhi, another very interesting rumour had made the rounds on social media. Individuals claimed that money could be withdrawn from RBI after getting the official stamp from the area DCP.

Truth: Delhi Police had to issue an advisory to rubbish such rumours, saying “These rumours are false and baseless. It is advised that citizens should disregard such rumours. They are being spread by mischievous elements.

Action as per law is being taken against such rumour mongering. Citizens should only rely and act upon information provided by authentic and verified government websites and press releases.

Most importantly, though, those spreading such rumours are also at risk of facing legal action. Delhi Police issued an advisory on November 11, 2016, for such mischievous elements. “Those mischievous elements spreading baseless rumours are warned that their actions may lead to prosecution under Section 153 & 505 of Indian Penal Code (IPC) along with relevant sections of Information Technology Act. All citizens are advised to disregard such rumours and false information being spread over social media. Citizens are also advised to report to the police about any individual engaged in spreading rumours and causing fear & alarm in the general public.