Prevalence of fake currency still a reality post-demonetisation, Pg9

Key Highlights:

• In 2024, ₹54.61 crore worth of fake currency was seized across India, including six lakh ₹500 notes and over one lakh ₹2,000 notes.
• Since demonetisation in 2017, ₹638 crore worth of fake currencies have been seized.
• The value of counterfeit notes seized in 2024 was the third highest since 2016, with higher seizures in 2020 and 2022.
• Between 2020-21 and 2024-25, over 11 lakh counterfeit notes, valued at ₹40.26 crore, were detected in the banking system.

Detailed Insights:

• Demonetisation in November 2016 aimed to curb black money, counterfeit currency, and corruption, but the problem of fake currency persists.
• The number of fake ₹500 notes seized in 2024 was almost four times the number seized in 2016, while fake ₹2,000 notes increased almost twice since 2017.
• New series currencies like ₹200 and ₹500, reintroduced post-demonetisation, are also being counterfeited, with over four lakh fake ₹500 notes detected in banks.
• As of May 2026, over 174 billion notes were in circulation, valued at ₹42.12 lakh crore, a 137% increase compared to ₹17.74 lakh crore in November 2016, indicating limited impact on reducing currency transactions.
• Maharashtra and Karnataka followed Gujarat in seizures of counterfeit currencies, accounting for ₹100 crore and ₹50 crore respectively between 2017 and 2024.

Key Concepts Involved:

• Counterfeit Currency: Fake currency produced without the legal sanction of the State or government.
• Legal Tender: Currency that must be accepted as payment for debt within its issuing jurisdiction.