Fake Indian currency notes rose by 31% in 2020-21: RBI report; How to detect fake notes

The annual report by the Reserve Bank of India (RBI), on Saturday, showed that there was an increase of 31.3 per cent in counterfeit notes detected in the denomination of new Rs 500 notes as compared to the previous year. The RBI's report further stated that 'during 2020-21, out of the total Fake Indian Currency Notes (FICNs) detected in the banking sector, 3.9 per cent were detected at the Reserve Bank and 96.1 per cent by other banks'. The Government had introduced new Mahatma Gandhi series notes of Rs 500 demonisation to replace the old ones in November 2016. 

The total expenditure on security printing from July 1, 2020, to March 31, 2021, was lesser than the previous year (July 2019 to June 2020). 

"The total expenditure in curred on security printing during July 1, 2020 to March 31, 2021 was `4,012.1 crore as against `4,377.8 crore in the previous year (July 2019 to June 2020)," mentioned RBI report.

The central bank, however, mentioned that counterfeit banknotes of Rs 500 denomination were found to be gaining currency. 

Here's how to detect fake 500 rupee notes:

The new 500 Rs note is different in colour, size, theme, location of security features and design elements from the previous item. The size of the new note is 63mm x 150mm. The colour of the note is stone grey and the main new theme is the Indian heritage site – Red Fort. There are several ways with which it can be determined whether a note is real or not:

• The numeral '500' at the bottom left-hand of the obverse side of the note is transparent.

• The underlying image of the numeral '500' with the denomination is visible.

• Denomination numeral '500' is written vertically in Devanagri.

• The location and relative position of Mahatma Gandhi on the note is changed. It is placed in the middle of the banknote.

• On the right side of Mahatma Gandhi's portrait, the guarantee clause, Governor's signature with Promise Clause and RBI symbol is present.

• Portrait of Mahatma Gandhi emerges in the watermark section. 

• On the top left side and bottom right side of the note number panel with numerals appear growing from small to big (in ascending font).

• On the bottom right side, denomination in numerals with Rupee Symbol '₹500' appear in colour changing ink (green to blue).