According to the Reserve Bank of India (RBI) latest report, the number of fake ₹500 notes have increased by 31% in circulation. Notably, this doesn’t include the fake currency seized by law enforcement agencies.
Back in 2016, the Narendra Modi government decided to cancel all the 1000 and 500 notes in the circulation completely. After demonetization, the central government had introduced new 2000,500, and 200 notes. Primarily, one of the reasons given by government for this sudden decision, was to eliminate fake notes in circulation. It’s been more than 4 years, still the demon of fake currency haunts India.
In general, there has been a decrease 29.7% in the circulation of fake currency over the last year. Nonetheless, this doesn’t disregard the fact that Rs.500 fake notes have increased in circulation by 31%, says the recent RBI annual report.
Reportedly, out of the total fake currency circulating in the system, around 3.9% were detected by the apex bank. On the other hand, the remaining 96.1% were detected by several other financial institutions which includes private companies, public sector organizations, and other cooperatives. Its important to note that we’ve witnessed a drop in fake notes when it comes to other denominations.
According to National Crime Records Bureau (NCRB), 287,404 notes worth ₹25.3 crore of fake currency was seized under Fake Indian Currency Notes (FICN) in 2019. That’s an increase of 11.7% over the previous year.
The incidents and reported cases that happened last month are enough to indicate how crucial is this issue. Last month, Kochi police seized fake currency worth Rs.1.8 crore and, talking about Assam, fake currency worth around Rs.26 Lakh was confiscated in Dibrugarh.
As per a survey, ₹500 notes add up to 68.4% of the overall notes in circulation, making them one of the most widely circulated denomination in the country. Looking in terms of volume, the share Rs.500 denomination has increased from 25.4% last year to 31.1% at the end of March, that’s a jump of over 5%. Interestingly, the only currency note that comes close to the dominion of 500 note is ‘₹10’ which accounts for 26.2% of the circulation capacity.