MHA Issues 'High Importance' Alert on Fake ₹500 Notes That Look Real — 5 Easy Ways to Identify Them

The Ministry of Home Affairs (MHA) has raised a red flag over a new batch of high-quality counterfeit ₹500 notes, issuing a 'high importance' alert to multiple enforcement and financial agencies. The forged currency, authorities warn, bears a close resemblance to genuine notes—both in print and texture—making detection difficult at first glance.

The alert has reportedly been circulated among top investigative and regulatory bodies, including the Directorate of Revenue Intelligence (DRI), Financial Intelligence Unit (FIU), Central Bureau of Investigation (CBI), National Investigation Agency (NIA), and the Securities and Exchange Board of India ( SEBI ). These agencies have been advised to exercise heightened vigilance, especially in cash-intensive sectors.

According to internal communications reviewed by several business platforms, the counterfeit ₹500 notes mimic genuine ones almost exactly, with only a subtle but crucial printing error giving them away. The flaw lies in the spelling of "RESERVE BANK OF INDIA"—where the letter "E" in "RESERVE" has been erroneously printed. 

Officials familiar with the matter explained that the mistake is so minor it could be easily overlooked during routine transactions, making these fakes particularly dangerous in circulation. The Ministry has urged citizens and institutions alike to inspect ₹500 notes carefully and report any suspicious currency to the authorities.

In light of the alert, the government has reiterated steps already in place to combat the circulation of fake currency. These include legal provisions under the Bharatiya Nyaya Sanhita, 2023, and the Unlawful Activities (Prevention) Act, 1967, along with the functioning of specialized bodies such as the National Investigation Agency (NIA), the FICN Coordination Group (FCORD), and the Terror Funding & Fake Currency (TFFC) Cell.

As counterfeiters continue to evolve their methods, officials have stressed the importance of public awareness in identifying and intercepting fake currency. 

If you're handling cash—especially ₹500 notes, here are five easy ways to tell if the note in your hand is genuine or not.

Look Closely at the Spelling of 'RESERVE BANK OF INDIA':  The biggest giveaway in this batch of fake notes is a subtle spelling error. On the fake notes, the word “RESERVE” is incorrectly spelt as “RASERVE” — with “E” replaced by “A”. This may go unnoticed without careful inspection.

Check the Security Thread: Genuine ₹500 notes have a security thread that changes colour from green to blue when the note is tilted. This thread also has visible inscriptions like ‘भारत’ and ‘ RBI ’. Counterfeit notes often fail to mimic this colour shift properly.

Observe the Watermark: Hold the note against light to see the portrait of Mahatma Gandhi and the electrotype watermark showing the denomination (500). Fake notes may have blurred or misaligned watermarks.

Feel the Raised Printing: Authentic ₹500 notes have intaglio (raised) print on key elements like Mahatma Gandhi’s portrait, the Ashoka Pillar emblem, and the identification mark. Run your fingers over these areas — if they feel flat or unevenly printed, the note could be fake.

 Use the RBI’s Mobile App or UV Light:  For quick verification, use the RBI’s ‘MANI’ app to scan and identify genuine notes. You can also check the note under UV light—certain features like serial numbers and the security thread should glow, which counterfeit versions often fail to replicate.