RBI fake currency report: Opposition's demonetization swipe at Modi government
The opposition on Sunday took a swipe at the Centre and PM Narendra Modi over a Reserve Bank of India (RBI) report showing a rise in counterfeit currency. They also mocked the ruling BJP's assurance that demonetization will eliminate fake currency. The report revealed that fake Rs. 2,000 and Rs. 500 currency notes increased by 54% and 102%, respectively, in the financial year 2021-22.
Why does this story matter?
The Centre announced demonetization in 2016 and claimed it will end the fake currency in the country. However, official numbers show the opposite. According to data submitted by the government in the Rajya Sabha, fake Rs. 500 notes in circulation in India have increased by over 197 times since 2016. In addition, the counterfeit Rs. 2,000 notes increased from 638 to 8,798 in 2020-21.
TMC leader O'Brien's demonetization jab at PM Modi
Reacting to the RBI report, Trinamool Congress leader Derek O'Brien tweeted: "Namaskar Mr. PM Narendra Modi... DEMONETIZATION? Remember? And how (WB CM and TMC chief) Mamata Banerjee swiftly took you on? How you promised the nation Demo would WIPE OUT ALL COUNTERFEIT CURRENCY." "Here's the latest RBI report pointing out huge increase in counterfeit notes (sic)," he said, sharing an infographic of the report.
How did Congress react?
Congress leader Rahul Gandhi also reacted sharply following the release of the RBI report on fake currency. "The only unfortunate success of demonetization was the TORPEDOING of India's economy," he said in a tweet. Notably, apart from flushing out black money, the elimination of fake currency notes had been cited as a reason for the demonetization exercise conducted by the central government in 2016.
Have a look at Rahul Gandhi's tweet
What does the RBI report say?
As per the RBI report, counterfeit notes of all denominations increased in the financial year 2021-22. The RBI detected 101.9% more fake notes of Rs. 500 denomination and 54.16% more fake notes of Rs. 2,000 denomination as compared to the previous year.
Centre's 2016 decision of demonetization
In 2016, the Centre announced the demonetization of Rs. 500 and Rs. 1,000 banknotes. The sudden decision resulted in cash shortages and inconveniences to people as they were forced to stand in long queues to exchange their old notes. However, the government justified the move by saying the demonization would curtail corruption, encourage digital transactions, and reduce counterfeit currency.
