The Ministry of Finance has announced a rise in counterfeit Rs 500 and Rs 2,000 banknotes in the 2023-24 period, identified in the banking system as Rs 2,000 notes are being gradually withdrawn from circulation.
Pankaj Chaudhary, the Union Minister of State for Finance, provided this update in a written reply to the Lok Sabha, referencing data from the Reserve Bank of India. The RBI noted that the number of counterfeit Rs 2,000 notes increased during 2023-24, as large quantities of these notes were processed during their phased withdrawal.
According to RBI data, counterfeit Rs 500 and Rs 2,000 notes have followed differing trends over the years. While counterfeit Rs 500 notes have risen sharply from 2,186.5 crore pieces in 2018-19 to 9,111 crore pieces in 2022-23, the number slightly dropped to 8,571.1 crore in 2023-24.
On the other hand, counterfeit Rs 2,000 notes reached a peak of 2,184.7 crore pieces in 2018-19, fell significantly to 879.8 crore in 2020-21 and then increased again to 2,603.5 crore pieces in 2023-24, coinciding with the ongoing withdrawal of Rs 2,000 notes from circulation. This fluctuation suggests that counterfeit trends are influenced by policy changes and circulation patterns.
Despite this recent surge, the overall detection of counterfeit currency across all denominations has steadily declined over the past five years, dropping from over 31,738 crore pieces in 2018-19 to just over 22,264 crore pieces in 2023-24, as the response detailed.
Since the withdrawal announcement on May 19, 2023, 98.04% of the Rs 2,000 banknotes, worth Rs 3.49 lakh crore, have been returned to the banking system, according to RBI statistics released earlier this month.
The public still possesses the remaining Rs 6,970 crore worth of Rs 2,000 notes as of October 31, 2024.
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