Steep rise in counterfeit Rs 500 and Rs 2,000 notes: Finance Ministry Data

Fake Rs 500 notes quadruple

The Rs 500 note, a mainstay of daily transactions, has witnessed a steep increase in counterfeit detections.

From 21,865 million pieces (mpcs) in 2018-19, the number of fake Rs 500 notes peaked at 91,110 mpcs in 2022-23 before slightly declining to 85,711 mpcs in 2023-24—a nearly fourfold rise compared to five years ago.

Fake Rs 2,000 notes triple since 2020-21

Counterfeit detections for Rs 2,000 notes have also surged, tripling since 2020-21. While detections dropped to 8,798 mpcs in 2020-21, they rebounded sharply to 26,035 mpcs in 2023-24, reflecting growing concerns about the security of high-denomination notes.

The Rs 2,000 note’s decline

Introduced after the 2016 demonetisation to alleviate cash shortages, Rs 2,000 notes initially accounted for 37.3% of the total currency value by March 2018.

However, concerns over misuse led to reduced printing from 2018-19. By March 2021, their share had fallen to 17%.

In May 2023, the Reserve Bank of India (RBI) announced the withdrawal of Rs 2,000 notes from active circulation, though they remain legal tender.

Citizens were given time to exchange or deposit these notes, aligning with the RBI’s shift to Rs 500 as the primary high-value denomination.

The Finance Ministry’s data ynderscores the increasing prevalence of counterfeit notes, which signals major challenges to monetary security and trust.