Fake Rs 1000 Notes in Circulation, Says RBI

Story:

The RBI has warned that fake Rs 1000 notes are in circulation in the country. Fake notes have been detected in the 2AQ and 8AC series.

Analysis:

The message spreading via social media states that RBI (Reserve Bank of India) has warned Indians about fake 1000 Rs notes that are in circulation in the country, after some fake notes have been detected in the 2AQ and 8AC series. Yes, it is a fact; the warning was however issued back in 2009.

The Issue

In June 2009 Indian media reported about the RBI warning that fake Rs 1000 notes are in circulation in the country, after a builder in Chennai got fake notes from an SBI ATM in the city. The Anti-terrorist Squad of Mumbai also seized 345 counterfeit notes of Rs 1,000 denomination in series 2AQ and 8AC from four persons of Jharkhand and West Bengal. The fake notes were bearing the signature of former RBI Governor Dr. Y V Reddy. After some fake 1,000 Rs notes were detected in the 2AQ and 8AC series, RBI issued an urgent alert to all private, foreign and public sector banks, making the use of Note Sorting Machines compulsory while handling cash in their branches. RBI asked the banks to be careful while dealing with these two series.

The issue of fake currency has been an issue in India. In November 2011, a confidential government report has found that four in every 1,000 currency notes in circulation in India are fake, and amounted to as much as Rs 3,200 crore in the year 2010. The cause of more concern, the fake notes that flowed from abroad into India in 2010 were in the range of Rs 1,500-1,700 crore. The counterfeit notes were flooding the country from neighborhood countries like Pakistan, Nepal and Bangladesh since 2000. The report also pointed a finger at Pakistan, saying it is their government officials who are directly involved in the process of making and distributing large numbers of fake notes. In fact the International Narcotics Control Strategy Report of 2011 prepared by the US state department said the same, “India also faces an increasing inflow of high-quality counterfeit currency, which is produced primarily in Pakistan… (and) represents a threat to the Indian economy”. However, the Pakistan high commission in New Delhi declined to comment on the matter back then.

It is because of the fake currency and also black money issues, the Reserve Bank of India (RBI) planned to withdraw all currency notes issued before 2005. You can read about it in detailed here.

Ways to Detect a Fake Note

Owing to the increased number of fake currency notes, the RBI has come up with additional security features for the banknotes in Mahatma Gandhi series. These distinct and easily recognizable security features on notes facilitate the detection of genuine notes and fake/forged ones. You can learn about all of them on RBI website, where they are explained with easy illustration.