The Indian government reported the detection of 2.17 lakh counterfeit currency notes in the financial year 2024-25, a slight decline from 2.23 lakh in 2023-24, according to Minister of State for Finance Pankaj Chaudhary in a written Lok Sabha reply. The Rs 500 notes (Mahatma Gandhi New Series) topped the list, with 1,17,722 fake notes seized, accounting for 54% of the total, followed by 51,069 Rs 100 notes and 32,660 Rs 200 notes.
The Reserve Bank of India (RBI) noted a 37.3% surge in fake Rs 500 notes, valued at Rs 5.88 crore, up from 85,711 notes worth Rs 4.28 crore in 2023-24. Counterfeit Rs 200 notes also rose by 13.9%, reaching 32,660 pieces valued at Rs 65.32 lakh. Meanwhile, fake Rs 2,000 notes plummeted 86.5% to 3,508, reflecting their withdrawal from circulation since May 2023. Lower denominations (Rs 10, Rs 20, Rs 50, Rs 100) saw declines, with Rs 100 detections dropping 23% to 51,069. Banks detected 95.3% of fake notes, while the RBI flagged 4.7%.
Chaudhary emphasized ongoing efforts to combat counterfeiting, with the government and RBI regularly updating banknote security features under Section 25 of the RBI Act, 1934. “Incorporating new designs is a continuous process to stay ahead of counterfeiters,” he said. The National Investigation Agency (NIA) has seized counterfeit notes worth Rs 8.5 crore since 2016 across 39 cases, with investigations pointing to cross-border smuggling from Pakistan and Bangladesh.
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The RBI’s annual report highlights the dominance of Rs 500 notes, comprising 86% of currency value and 40.9% of volume in circulation, underscoring their appeal to counterfeiters post-2016 demonetization. Social media on X noted public concerns about fake notes in ATMs, urging better detection systems. The Finance Ministry is exploring AI-based detection and expanding Central Bank Digital Currency (CBDC) pilots, with e-rupee circulation reaching Rs 1,016 crore by March 2025, to reduce cash-based fraud.
In a separate response, Chaudhary highlighted economic growth, with private companies’ net fixed assets rising 7.6%, 10.3%, and 10.2% in 2021-22, 2022-23, and 2023-24, respectively. Bank-sanctioned projects doubled from 401 (Rs 1.4 lakh crore) in 2021-22 to 944 (Rs 3.9 lakh crore) in 2023-24. Initiatives like Production-Linked Incentive (PLI) schemes, FDI liberalization, and infrastructure financing through NIIF and NaBFID are driving investment, with Budget 2025-26 introducing measures like the Urban Challenge Fund to sustain momentum.
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