note demonetisation

No, the RBI hasn't announced a Rs 2,000 note with a 'nano GPS chip' that it can track

RBI's official release about the notes doesn't mention a tracking chip.

Prime Minister Narendra Modi may have surprised India after he announced on Tuesday that Rs 500 and Rs 1,000 notes would no longer be legal tender, but one part of the new system didn't come completely out of the blue. For a few days now, pictures of new Rs 2,000 notes have been floating around the internet and Modi announced that these will be issued for limited circulation soon. But those pictures also came with some rather fantastical rumours about these notes.

According to these rumours which were circulating on WhatsApp even before the demonetisation announcement, the new notes would come with what is variously described as a "micro nano GPS chip", which is supposed to be able to help track individual notes by way of satellite.

The technology even has its own serious-sounding abbreviation, NGC, and the rumours – some of which made their way to the mainstream media, like this Zee News post – "the chip has been fitted in such a way that it can detect Rs 2000 notes even from 120 meters below the ground."

That would be astounding, if it were true. Except it isn't. On Wednesday, the RBI dismissed the rumours entirely saying that such technology does not exist anywhere in the world.

According to the rumours, the technology would have meant that piles of cash would be detectable from space, making life much easier for police forces (and anti-corruption crusaders). And it's not impossible, even if it may sound so. American engineers have developed ways to embed radio frequency identification chips on paper in ways that could aid tracking.

Finance Secretary Ashok Lavasa said that the new notes that will be introduced will be "high security", suggesting, as is routine, that new currency paper comes with added security features that make them harder to counterfeit. But he did not mention any tracking features.

When the Reserve Bank of India officially announced all the details about the new Rs 2,000 notes, however, there was no mention of any NGC.

There are a few interesting elements to the new note. Besides the colour, it will include a picture of Mangalyaan, the Indian spacecraft that made it all the way to Mars. Details about the currency does not include any mention of new security or tracking features, which presumably the RBI would want to advertise if they had implemented such technology.

Rumours might always insist that the government may not be telling us about the new technology – all the better to detect illicit cash piles once the notes are in circulation – but it seems unlikely that such information would be kept hidden, or that people would not discover the chips soon after they are out in the economy.

And even though the technology appears to be possible, barring fantastical notions of satellites being able to track piles of cash deep into the ground, it also might not yet be affordable enough to actually put on currency, even high-denomination notes.

Update: The post has been updated to include a fresh quote from the finance secretary saying the new notes will be "high security."

Update 2: On Wednesday afternoon, RBI spokesperson Alpana Killawala told News18, "such a technology does not exist at the moment in the world, then how can we introduce such a feature?”

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Some of the worst decisions made in history

From the boardroom to the battlefield, bad decisions have been a recipe for disaster

On New Year’s Day, 1962, Dick Rowe, the official talent scout for Decca Records, went to office, little realising that this was to become one of the most notorious days in music history. He and producer Mike Smith had to audition bands and decide if any were good enough to be signed on to the record label. At 11:00 am, either Rowe or Smith, history is not sure who, listened a group of 4 boys who had driven for over 10 hours through a snowstorm from Liverpool, play 15 songs. After a long day spent listening to other bands, the Rowe-Smith duo signed on a local group that would be more cost effective. The band they rejected went on to become one of the greatest acts in musical history – The Beatles. However, in 1962, they were allegedly dismissed with the statement “Guitar groups are on the way out”.

Source: Wikimedia Commons
Source: Wikimedia Commons

Decca’s decision is a classic example of deciding based on biases and poor information. History is full of examples of poor decisions that have had far reaching and often disastrous consequences.

In the world of business, where decisions are usually made after much analysis, bad decisions have wiped out successful giants. Take the example of Kodak – a company that made a devastating wrong decision despite overwhelming evidence to the contrary. Everyone knows that Kodak couldn’t survive as digital photography replaced film. What is so ironic that Alanis Morissette could have sung about it, is that the digital camera was first invented by an engineer at Kodak as early as 1975. In 1981, an extensive study commissioned by Kodak showed that digital was likely to replace Kodak’s film camera business in about 10 years. Astonishingly, Kodak did not use this time to capitalise on their invention of digital cameras – rather they focused on making their film cameras even better. In 1996, they released a combined camera – the Advantix, which let users preview their shots digitally to decide which ones to print. Quite understandably, no one wanted to spend on printing when they could view, store and share photos digitally. The Advantix failed, but the company’s unwillingness to shift focus to digital technology continued. Kodak went from a 90% market share in US camera sales in 1976 to less than 10% in 2012, when it filed for bankruptcy. It sold off many of its biggest businesses and patents and is now a shell of its former self.

Source: Wikimedia Commons
Source: Wikimedia Commons

Few military blunders are as monumental as Napoleon’s decision to invade Russia. The military genius had conquered most of modern day Europe. However, Britain remained out of his grasp and so, he imposed a trade blockade against the island nation. But the Russia’s Czar Alexander I refused to comply due to its effect on Russian trade. To teach the Russians a lesson, Napolean assembled his Grand Armée – one of the largest forces to ever march on war. Estimates put it between 450,000 to 680,000 soldiers. Napoleon had been so successful because his army could live off the land i.e. forage and scavenge extensively to survive. This was successful in agriculture-rich and densely populated central Europe. The vast, barren lands of Russia were a different story altogether. The Russian army kept retreating further and further inland burning crops, cities and other resources in their wake to keep these from falling into French hands. A game of cat and mouse ensued with the French losing soldiers to disease, starvation and exhaustion. The first standoff between armies was the bloody Battle of Borodino which resulted in almost 70,000 casualties. Seven days later Napoleon marched into a Moscow that was a mere shell, burned and stripped of any supplies. No Russian delegation came to formally surrender. Faced with no provisions, diminished troops and a Russian force that refused to play by the rules, Napolean began the long retreat, back to France. His miseries hadn’t ended - his troops were attacked by fresh Russian forces and had to deal with the onset of an early winter. According to some, only 22,000 French troops made it back to France after the disastrous campaign.

Source: Wikimedia Commons
Source: Wikimedia Commons

When it comes to sports, few long time Indian cricket fans can remember the AustralAsia Cup final of 1986 without wincing. The stakes were extremely high – Pakistan had never won a major cricket tournament, the atmosphere at the Sharjah stadium was electric, the India-Pakistan rivalry at its height. Pakistan had one wicket in hand, with four runs required off one ball. And then the unthinkable happened – Chetan Sharma decided to bowl a Yorker. This is an extremely difficult ball to bowl, many of the best bowlers shy away from it especially in high pressure situations. A badly timed Yorker can morph into a full toss ball that can be easily played by the batsman. For Sharma who was then just 18 years old, this was an ambitious plan that went wrong. The ball emerged as a low full toss which Miandad smashed for a six, taking Pakistan to victory. Almost 30 years later, this ball is still the first thing Chetan Sharma is asked about when anyone meets him.

So, what leads to bad decisions? While these examples show the role of personal biases, inertia, imperfect information and overconfidence, bad advice can also lead to bad decisions. One of the worst things you can do when making an important decision is to make it on instinct or merely on someone’s suggestion, without arming yourself with the right information. That’s why Aegon Life puts the power in your hands, so you have all you need when choosing something as important as life insurance. The Aegon Life portal has enough information to help someone unfamiliar with insurance become an expert. So empower yourself with information today and avoid decisions based on bad advice. For more information on the iDecide campaign, see here.

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