The Reserve Bank of India (RBI) annual report for the fiscal year 2022-23 has shed light on the increasing number of counterfeit banknotes in circulation in India. The report highlights a significant rise in the detection of fake Rs 500 notes compared to the previous year. Additionally, it provides insights into the dominance of Rs 500 and Rs 2,000 banknotes in terms of value, as well as the prevalence of fake notes in other denominations. The report also addresses the decision to withdraw Rs 2,000 banknotes from circulation. Let’s delve into the details.
Rise in Detection of Fake Rs 500 Notes
According to the RBI annual report, the number of counterfeit Rs 500 notes detected in FY23 saw a 14 percent increase compared to the previous fiscal year. In FY23, a total of 91,110 pieces of fake Rs 500 notes were identified, while 79,669 counterfeit notes were detected in FY22. This surge in fake Rs 500 notes raises concerns regarding the security and integrity of India’s currency system.
Dominance of Rs 500 and Rs 2,000 Banknotes
The report highlights that in terms of value, the combined share of Rs 500 and Rs 2,000 banknotes accounted for 87.9 percent of the total value of banknotes in circulation as of March 31, 2023. This reflects a slight increase from 87.1 percent recorded on March 31, 2022. It is noteworthy that the volume of Rs 500 banknotes constituted the highest share at 37.9 percent, followed by Rs 10 denomination banknotes at 19.2 percent.
Prevalence of Fake Notes in Other Denominations
While the focus has been on fake Rs 500 notes, the RBI report also highlights the detection of counterfeit notes in other denominations. In FY23, the central bank detected 78,699 fake Rs 100 notes, 27,258 fake Rs 200 notes, and 9,806 fake Rs 2,000 notes. These numbers underscore the need for continued vigilance to combat the circulation of counterfeit currency across various denominations.
Withdrawal of Rs 2,000 Banknotes
The RBI report mentioned the decision to withdraw Rs 2,000 banknotes from circulation. However, it clarified that these banknotes will still be considered legal tender. The central bank has instructed commercial banks to cease the issuance of Rs 2,000 notes with immediate effect. This move aims to curb the circulation of high-value counterfeit currency and facilitate a more secure currency ecosystem.
Decline in Counterfeit Rs 2,000 Notes
According to the report, the detection of counterfeit Rs 2,000 notes decreased by 27.9 percent in the fiscal year 2022-23 compared to the previous year. This decline indicates some success in tackling the production and circulation of fake high-value banknotes.