Centre Issues High Alert on Counterfeit ₹500 Notes; Spelling Error Flags Fake Currency
MHA warns banks and agencies about high-grade fake ₹500 notes in circulation; key identifier is a subtle spelling mistake in RBI name.
New Delhi: The Ministry of Home Affairs (MHA) has issued a nationwide alert following intelligence reports about the circulation of high-quality counterfeit ₹500 currency notes. The alert has been sent to banks and major financial enforcement and regulatory bodies, urging heightened vigilance.
According to the MHA, the counterfeit notes closely resemble genuine ₹500 notes in appearance and printing quality, making them difficult to detect. However, a subtle typographical error serves as a key identifier “RESERVE BANK OF INDIA” is incorrectly spelled with an ‘A’ replacing the ‘E’, appearing as “RSERVE BANK OF INDIA.”
Officials described the alert as “high importance” and confirmed that it has been circulated to critical agencies, 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), in addition to banking institutions.
Due to the counterfeit notes’ quality and near-identical features, the error is considered minor enough to go unnoticed without careful scrutiny. A sample image of the suspected counterfeit note has also been distributed for reference.
Authorities have called on banks and institutions handling cash to remain on alert, as reports indicate that these fake notes may have already infiltrated the financial system. The public has also been advised to exercise caution and immediately report any suspicious currency.
When questioned about the extent of fake currency in circulation, a senior official noted that the true volume cannot be accurately estimated. Data on counterfeit notes is compiled from various channels, including public submissions to banks, and the actual figures are likely much higher than reported.
In a recent parliamentary response, the government reiterated its commitment to combating counterfeit currency through legal frameworks such as the Bharatiya Nyaya Sanhita, 2023, and the Unlawful Activities (Prevention) Act, 1967. Institutions like the National Investigation Agency (NIA), FICN Coordination Group (FCORD), and the Terror Funding and Fake Currency (TFFC) Cell have been tasked with addressing the issue.