BUSINESS

Gujarat Has Seen The Maximum Fake ₹2000, New ₹500 Notes: Report

Has demonetisation really solved the problem of fake currency?

06/04/2017 10:06 AM IST | Updated 06/04/2017 11:19 AM IST
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Fake versions of newly-issued currency notes of₹2,000 and ₹500 with a combined face value of ₹6.2 crore have been seized in India since demonetisation was announced, with over ₹5.7 crores caught in Gujarat alone, representing over 90 per cent of such counterfeit currency, The Telegraph reported junior home minister Kiren Rijiju as saying.

Rijiju told the Rajya Sabha that tackling fake currency had been one of the main reasons behind the demonetisation exercise. Other states where new fake currency was found were Bengal and Assam.

Out of the total fake currency caught, about 27,949 were the new ₹2000 notes and 12,956 in new ₹500 notes, he said.

These numbers show that the introduction of new notes has had limited success in tackling the problem of fake currency. Government officials recently told PTI that newly-issued notes lacked any unique security features that were different from the demonetised ₹1,000 and ₹500 notes.

The old notes hadn't had a security upgrade for nearly 16 years, say officials. In February, an SBI ATM dispensed ₹2000 notes that had "Children Bank of India" printed in place of Reserve Bank of India.

The government is now considering altering the security features of the new ₹2000 and ₹500 notes every three to four years, in line with the international norm. It also plans to launch an entirely new denomination of ₹200 notes that will have advanced security features, Mint reported recently.

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