Fake Rs 500, Rs 2,000 Notes Rose In 2023-24, Overall Counterfeit Currency Declined Over Five Years

The Ministry of Finance has reported an increase in counterfeit Rs 500 and Rs 2,000 currency notes in the year 2023-24, detected in the banking system during the ongoing withdrawal of Rs 2,000 notes from circulation.

Pankaj Chaudhary, Union Minister of State for Finance, shared this information in a written response to the Lok Sabha, citing data from the Reserve Bank of India. 

Counterfeit Rs 2,000 notes surged during 2023-24 as large volumes of these notes were processed during their phased withdrawal, according to RBI.

Counterfeit Rs 500 and Rs 2,000 notes have shown contrasting trends over the years, according to RBI data. While counterfeit Rs 500 notes have seen a sharp rise from 2,186.5 crore pieces in 2018-19 to 9,111 crore pieces in 2022-23, the number briefly declined to 8,571.1 crore in 2023-24.

In contrast, counterfeit Rs 2,000 notes peaked at 2,184.7 crore pieces in 2018-19, dropped significantly to 879.8 crore in 2020-21, and surged again to 2,603.5 crore pieces in 2023-24, coinciding with the withdrawal of Rs 2,000 notes from circulation. This indicates a fluctuation in counterfeit trends influenced by policy changes and circulation patterns.

Despite this spike, the overall detection of counterfeit currency across all denominations has shown a steady decline over the past five years, falling from more than 31,738 crore pieces in 2018-19 to over 22,264 crore pieces in 2023-24, the answer clarified. 

As per RBI data reported earlier this month, 98.04% of Rs 2,000 banknotes, valued at Rs 3.49 lakh crore, have been returned to the banking system since the withdrawal announcement on May 19, 2023. The remaining Rs 6,970 crore worth of Rs 2,000 notes are still held by the public as of Oct. 31, 2024.