Followed by the demonetization of Rs 500 and Rs 1000 notes in India, the talk of the internet is now about the traceable Rs 2000 notes.
Many entertainment websites have already started to mislead people by spreading a rumor of traceable currency and it has been spreading wildly among the social media. The new currency is named as NGC currency and Photos pointing to a small black square on the specimen currency are misinterpreted as GPS chips.
According to the rumor, New 2000 Rs currency notes are said to be coming with a Nano GPS chip, by which each currency is given an identity to track their position. Thereby large deposition of currencies will trigger an alert to tax authorities for interrogation.
Let’s see what points are made by rumors and the Actual fact
The Hoax states
- A tiny GPS chip made with Nanotechnology will be embedded into banknotes
- These chips have the capability to interpret signals even 120 meters underground
- These GPS chips don’t need a power supply.
- The currency can self-transmit the received GPS signals for tracking.
- Firstly there is no such chip called NGC to exist anywhere in the world
- The smallest possible GPS available till date is made by Origin GPS, which still needs to be mounted on an external circuit.
- We all know that any GPS device will not work indoors, and needs to face the sky for properly locking a co-ordinate, so the hoax stating the detection of notes even under 120 meters is beyond imagination.
- GPS devices require a continuous power supply to capture the signals, even a handheld GPS device powered by two AA batteries may not last longer than 2 days when used frequently.
- GPS devices are one-way devices, I.e they are designed only to receive signals and cannot reflect them back without a secondary data transmission medium. that’s why GPS tracking modules require GSM modules to track them.
Practical implementation issues
Even if the government manages to add a GPS chip, the cost of making such banknotes will be high. The cost of making one Rs 1000 note is Rs 3 , if a banknote have to be made with a GPS chip, the production cost will exceed 200 Rs thereby having an effect on setting the value of the currency.
Additionally, No country in the world has adopted a digital tracking system for currency.
Is there any possibility of implementing a traceable currency in future?
It is possible to give currencies with an electronic identification by embedding a RFID chip, these chips are small enough to be embedded into a currency and don’t require power supplies for operation. It is still it is impossible to track them from a remote location. However, RFID detectors can be placed at check posts or toll booths for detecting the illegal transit of a large amount of money. but these type of trackable currencies not coming anytime soon.
RBI has Clarified that there is no NSG Chip on the Rs 2000 Note.
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