Money & Banking

₹500 notes account for half of all counterfeits detected

Our Bureau Mumbai | Updated on August 21, 2014 Published on August 21, 2014


RBI plans trial run of plastic notes next year

The RBI and commercial banks together detected 4,88,273 pieces of counterfeit notes in 2013-14 as against 4,98,252 pieces in the previous year. Of the total counterfeit notes detected in FY14, 95.9 per cent were detected by commercial bank branches and the rest at Reserve Bank offices, the central bank said in its annual report.

Of the total counterfeit notes, ₹500 denomination notes accounted for 52 per cent; ₹100 (24 per cent); and ₹1,000 (22.5 per cent).

During 2013-14, the number of ₹1,000 and ₹100 counterfeit notes detected increased by 11.8 per cent and 9.8 per cent, respectively, whereas that of ₹500 denomination decreased by 10.3 per cent, as compared to the previous year.

This RBI data does not include counterfeit notes seized by the police and other enforcement agencies.

To ensure proper and prompt reporting of counterfeit notes, the RBI continued to emphasise on installing note-sorting machines in chests/ branches and creation of forged notes vigilance cells in all banks, the report said.

Banks have been advised to realign their cash management in such a manner so as to ensure that cash receipts in denominations of ₹100 and above are not put into recirculation without the banknotes being machine-processed for authenticity.

The RBI also introduced an incentive-penalty system relating to detection and reporting of counterfeit notes by banks.

The RBI said it expects to launch field trials of plastic notes by next year.

Published on August 21, 2014
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