Counterfeit ₹500 notes up 300% in India over 5 years
The Finance Ministry has revealed a shocking rise in the circulation of counterfeit ₹500 notes in India. In the last five years, there has been a whopping 317% rise in these fake notes. The figures were tabled in Parliament today, showing an increase from 21.87 million pieces (mpcs) in FY19 to 91.11 mpcs by FY23. However, a marginal dip was noted with numbers declining to 85.71 mpcs in FY24.
FY22 witnessed highest annual increase in counterfeit notes
Notably, FY22 saw the highest annual rise in counterfeit ₹500 notes, with numbers doubling from 39.45 mpcs in FY21 to 79.67 mpcs. This was a sharp spike of 102%. Fake ₹2,000 notes also witnessed a staggering 166% rise in FY24, going up from 9.81 mpcs in FY23 to a shocking 26.04 mpcs.
Overall fake currency circulation drops
Despite the massive spike in fake ₹500 and ₹2,000 notes, the government claimed a 30% overall decline in fake currency across all denominations. The number of fake notes fell from 317.38 mpcs in FY19 to 222.64 mpcs by FY24.
₹500 note's share in overall currency rises to 86.5%
The Reserve Bank of India (RBI) stated in May that the share of ₹500 currency notes in total circulation has increased to 86.5% at the end of March 2024, compared to 77.1% the previous year. The central bank's annual report cited the withdrawal of ₹2,000 denomination notes, announced in May 2023, as the main reason for the surge, with its share plummeting from 10.8% to just 0.2%.
₹500 note dominates volume of bank notes in circulation
In volume, the ₹500 denomination led with 5.16 lakh notes while the ₹10 denomination trailed far behind with 2.49 lakh as of March 31, 2024. The RBI's annual report also showed that both the value and volume of bank notes in circulation, increased by 3.9% and 7.8% respectively in FY24, as opposed to a rise of 7.8% and 4.4%, respectively, in the previous fiscal.
