Staggering Rise In Counterfeit Notes of Rs500 and Rs2,000. Congress Calls It Colossal Failure of Demonetisation
Moneylife Digital Team 27 November 2024
Following the withdrawal of Rs2,000 banknotes from circulation and processing of these notes in large numbers, counterfeit notes detected in this denomination increased during FY23-24, the Parliament was informed. During the past six years, total number of counterfeit notes of Rs500 Mahatma Gandhi (new) series increased to 347.86bn (billion) pieces, while the government detected and reported 97.11bn pieces of fake notes of Rs2,000 denomination, a written reply from Pankaj Chaudhary, the minister of state for finance, shows.
 
Using data presented in Parliament that reveals a staggering surge in counterfeit Rs500 and Rs2,000 notes across the country, the Congress party alleged that it underscores the colossal failure of demonetisation, a policy touted as a decisive move to curb counterfeit currency and black money. 
 
In a post on X, Pawan Khera, chairman of the media & publicity department in the All India Congress Committee (AICC), shared the reply from Mr Chaudhary, saying "Counterfeit Rs500 (Mahatma Gandhi New Series) notes detected in the banking system skyrocketed from 21,865mn (million) pieces in FY18-19 to 85,711mn pieces in FY23-24. This marks an approximate 300% increase over five years."  
 
"FY21-22 witnessed the sharpest annual spike in counterfeit Rs500 notes, doubling from 39,453mn pieces in FY20-21 to 79,669mn pieces—a 102% surge in a single year. Counterfeit Rs2,000 notes also saw an alarming 166% rise in FY23-24, leaping from 9,806mn pieces in FY22-23 to 26,035mn pieces," Mr Khera says.  
 
He further says over the past eight years, repeated analyses have labelled demonetisation a monumental misstep with far-reaching consequences. "The government's own figures expose how this ill-conceived policy has backfired, devastating not only the economy but also the livelihoods of countless small and medium businesses!"
 
 
Selvaganapathi TM, a member of Parliament (MP) has asked for information about the number of counterfeit currency notes of Rs500 (new series) and Rs2,000. The MP also asked whether counterfeit notes have become rife once again, despite the claims by the Union government that the number of counterfeit notes detected has fallen.
 
In his reply, Mr Chaudhary, the minister, says, "As per RBI, on account of the ongoing  withdrawal of Rs2,000 banknotes from circulation and processing of these notes in large numbers, counterfeit notes detected in this denomination increased during FY23-24."
 
 
"As per the data provided by RBI, the total number of counterfeit currency notes of all denominations detected and reported in the banking system has seen a decline, from 3,17,384mn pieces in FY18-19 to 2,22,639mn pieces in FY23-24," the minister added.
 
Comments
Gupta10
16 hours ago
Complete nonsense. The government has lost its mind. This data is impossible to be true. 26035 million 2000 rupee notes amounts to 52 lac crore and 85711 million 500 rupee notes amounts to 43 lac crore. The sum of these 2 is 95 lac crore. This is 3-4 times the total currency in circulation in India. Are they saying they found so many fake notes that these fake notes were 3-4 times the total currency in circulation? Clearly the government is confused about what million means. Or they have published value of notes as number of notes. Utter stupidity of the government and absolute lack of common sense by all the media that is publishing this data without questioning the government on the integrity of the information given.
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