20 Days After Demonetisation, Only 3.2% of All Fake Notes Returned

The number of deposits of counterfeit Rs 500 and Rs 1000 notes is likely to be increased by 30 December.

Rs 500 and Rs 1,000 notes were discontinued from 8 November as a step to curb black money. (Photo: PTI)

One of the main objectives of government’s demonetisation drive was to put an end to the circulation of fake notes, used for sponsoring terror activities.

However, more than 20 days have passed and the number of fake notes returned to the system still stands very low. According to a Times of India report, by 27 November only 1.39 lakh fake notes with a face value of Rs 9.63 crore have been returned to the banking system. This constitutes just 3.4% of the total notes returned so far.

Earlier in the year, The Indian Statistical Institute (ISI) had estimated the total value of fake notes to be around Rs 400. Rs 1000 notes amounted for 50% of these notes while Rs 500 notes made up for at least 25% of the amount.

Also Read: Security Scandal: New Rs 500 Note Is Vulnerable to Counterfeiting

According to this estimate, the combined value of fake notes of Rs 500 and Rs 1000 in circulation came close to Rs 300 crore. In proportion to this data, the number of notes returned are extremely less.

Experts say that this shows that most of these counterfeit notes are either with black money hoarders or terrorist groups, who would not return them to the system.

However, the number of deposits of such notes is likely to be increased by 30 December.

A senior IPS officer who has worked with terror modules told Times of India, “If we are to say that terror groups had most of this money, then it would have made its way to the market, because stocking money isn't of use to them. They are pumped with fake currency with a dual agenda: One, to fund themselves. And two, to destabilise our economy by infiltrating our system with such notes."

(With inputs from the Times of India)

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