The detection of counterfeit Rs 500 notes surged by nearly 317% between 2018-19 and 2022-23, according to data presented in Parliament, although the latest figures for 2023-24 indicate a slight decline.
In 2018-19, authorities identified 21,865 million counterfeit Rs 500 notes. By 2022-23, this figure had risen to 91,110 million, reflecting a 316.6% increase. However, during the current financial year, the number dropped to 85,711. The government attributed this fluctuation to ongoing measures against counterfeit currency.
The number of fake Rs 2,000 notes detected also saw notable shifts during the period under review. From 21,847 million in 2018-19, the figure dropped to 9,806 million in 2022-23, before spiking to 26,035 million in 2023-24. The government-linked this rise to the large-scale withdrawal of Rs 2,000 notes from circulation, which began last year.
Despite the increases in counterfeit Rs 500 and Rs 2,000 notes, the overall number of fake currency notes across denominations has decreased. Data revealed a 29.8% decline, with 3,17,384 counterfeit notes detected in 2018-19 compared to 2,22,639 in 2023-24.
The Reserve Bank of India recently reported that Rs 500 notes now constitute 86.5% of the total currency in circulation as of March 2024, up from 77.1% a year earlier. This increase is attributed to the withdrawal of Rs 2,000 notes, which was announced in May last year.