Reserve Bank of India (RBI) has informed the Standing Committee on Finance that the number of fake Rs 500 notes detected in the first quarter of the current financial year rose by nearly 37 per cent over the same quarter a year ago.
In the period between April to June 2024, banks and the RBI found 1,12,154 counterfeit Rs 500 notes. In the same quarter of 2023, more than 82,000 counterfeit notes of the same value were discovered. The Rs 500 note is still the most counterfeited denomination among Indian currency notes, according to the data.
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Overall Counterfeit Note Detection
Total of 2.24 lakh fake currency notes of all denominations were detected in the first quarter of FY25. This is slightly lower than the 2.26 lakh fake notes that were detected in the same quarter of FY24. The data was disclosed by RBI officials at a parliamentary panel meeting, which is considering monetary policy and banking transactions.
Other Denominations Also Affected
The RBI also hinted that fake currency was found in higher denomination Rs 100, Rs 200, and Rs 2,000 notes too. However, the circulation of spurious Rs 2,000 has reduced significantly after the denomination was officially withdrawn from circulation in 2023. Most of the fake currency is still in the form of higher denomination notes.
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Detection Process And Reporting
The RBI explained to the committee that banks and currency chests have both machine and manual devices for detecting forged currency. Once the fake notes are identified, banks are required to report to the police and send the notes to the RBI to verify and destroy them.
Monitoring And Public Awareness
The central bank maintains a database of counterfeit money in order to monitor patterns and assist in preventive activities. The database is employed to monitor patterns, identify areas of counterfeiting activity, and assist law enforcement units.
Cash counting machines, note counters, and counterfeit detection devices are installed in banks to improve detection. Training sessions are also conducted for bank staff to allow them to identify counterfeit notes appropriately.
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The RBI also emphasised the role of public vigilance in preventing the circulation of fake currency. The public is requested to thoroughly check their notes and report any suspicious ones to the authorities. The note, once confirmed as fake, is not returned to the individual bringing it.
