Counterfeit Rs500 banknotes swell by over 100% in FY22

The financial year 2021-22 (FY22) saw a big surge in counterfeit notes of all denominations in India, according to the report on currency and finance released by the Reserve Bank of India (RBI) on Friday. 

Among all notes that saw an increase of fake notes, Rs 500 was the worst hit. As compared to last year the central bank detected 101.9 per cent more fake notes of Rs500 denomination and a 54.16 per cent increase in fake notes of Rs2,000.
Compared to the previous year, there was an increase of 16.4 per cent, 16.5 per cent, 11.7 per cent, 101.9 per cent and 54.6 per cent in the counterfeit notes detected in the denominations of Rs10, Rs20, Rs200, Rs500 (new design) and Rs2,000, respectively. 
The counterfeit notes detected in the denominations of Rs50 and Rs100 declined by 28.7 per cent and 16.7 per cent, respectively.
The seriousness of the counterfeit issue can be gauged by the fact that the Rs500 and Rs2,000 banknotes together accounted for 87.1 per cent of the total value of banknotes in circulation as on 31 March 2022, against 85.7 per cent as on 31 March 2021. 
In volume terms, Rs500 denomination constituted the highest share at 34.9 per cent, followed by Rs10 denomination banknotes, which constituted 21.3 per cent of the total banknotes in circulation as on 31 March 2022, the report added.
The value and volume of banknotes in circulation increased by 9.9 per cent and 5.0 per cent, respectively, during 2021-22 against 16.8 per cent and 7.2 per cent, respectively, during 2020-21. 
Out of the total Fake Indian Currency Notes (FICNs) detected in the banking sector, 6.9 per cent were detected at the Reserve Bank and 93.1 per cent at other banks.