Written by Shaweta Sharma
Edited by Himanshi Shivani
The fake Indian currency has always been a big issue for the Indian economy. It weakens the natural flow of money and also slowdowns the growth of the monetary system.
Counterfeiters make notes so well that it makes it difficult to identify them. Counterfeit currency notes circulated in the Indian economy are called Fake Indian Currency Notes (FICN).
Why is there fake currency in our economy?
The reason for the reduced cash flow of original currency is the injection of suspicious fake notes. The criminal groups or individuals use this method from different localities including Indian origin or out of India.
Fake Indian notes are mainly used in terror-related activities. This money primarily flows from Nepal, Pakistan, and Bangladesh, most from the border states of India.
The terrorists use it to spread economic terror and infect the Indian economic growth. They have networks all over India that help them in this Unlawful activity.
Government Step and Effects
Recently on 8 November 2016, The Indian government took a big monetary step – Monetisation of existing notes of 500 and 1000 rupees. It was estimated that corruption and black money problems will have vanished away after this.
However, according to the recent Reserve Bank of India, annual reports and the National Crime Records Bureau data are stating ironical results. Only three months after the newly minted 2,000 rupee note was introduced in India, multiple counterfeit copies of it were found and confiscated.
According to RBI’s annual report for 2019-20 Fake Indian Currency Notes (FICNs) are again detected in the banking sector, among this 4.6 percent were detected at the Reserve Bank and 95.4 percent by other banks. A total of 2,96,695 pieces of counterfeit notes were detected.
The number of counterfeit notes of Rs 2,000 detected was 17,020 pieces during the last fiscal, down from 21,847 in 2018-19. But it’s majorly the effect of the Government’s pause on printing 2000 rupee notes in the fiscal year 2019-2020.
Although, in January 2020, analysis of the latest reports of NCRB indicated that 2,000 rupee notes made up most of the fake currency seized in India after demonetization.
Also, Gujarat has emerged as the hub for fake 2000 rupee notes in the last 3 years. In the national context, Gujarat had a 26.28 percent share in all fake Rs. 2,000 notes seized post demonetization.
The Solution
The Indian government, along with RBI needs to take big and trusted steps to stop this fake currency in the Indian economy. The public also needs to be able to identify their currency. To help identify the originality of currency The RBI has built a website called ‘paisaboltahai’.
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