Over 100% increase in fake Rs 500 notes, says RBI report: Here’s how to check authenticity

The Reserve Bank of India (RBI) on Friday said that counterfeit notes of all denominations have increased in the financial year 2021-22 (FY22).

According to the central bank recent report, among all notes that saw an increase of fake notes, Rs 500 was the worst hit.

As compared to last year, RBI detected 101.9% more fake notes of Rs 500 denomination and a 54.16% increase in fake notes of Rs 2,000 tender.

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Here is how you can the authenticity of Rs 500 note

1. If the light is shed on the currency note, you will be able to see 500 written in special places.

2. 500 will also be written in Devanagari on the currency note

3. Orientation and relative position of Mahatma Gandhi's photo shifts to the right.

4. India will be written on the Rs 500 currency note.

5. When the currency note is bent, the security head colour will change from green to indigo.

6. Governor's signature, guarantee clause, promise clause, and RBI emblem have moved to the right of the currency note

7. Mahatma Gandhi's photo and electrotype watermark are there on the currency note.

8. Colour of the Rs 500 written on the note changes from green to blue.

9. Ashoka Pillar on the right side of the currency note

10. Printed Swachh Bharat logo and slogan

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Number of Rs 2000 currency notes continue to decline

The number of bank notes of Rs 2000 denomination has steadily declined over the years to touch 214 crore or 1.6 per cent of the total currency notes in circulation at the end of March this year.

At the end of March 2020, the number of Rs 2000 denomination notes in circulation stood at 274 crore, accounting for 2.4 per cent of the total number of currency notes in circulation. The count declined to 245 crore or 2 per cent of the total bank notes in circulation as of March 2021 and further fell to 214 crore or 1.6 per cent at the end of last fiscal year.

Rs 500 notes

According to the report, the number of Rs 500 denomination notes in circulation rose to 4,554.68 crore at the end of March this year as against 3,867.90 crore in the year-ago period.

"In volume terms, Rs 500 denomination constituted the highest share at 34.9 per cent, followed by Rs 10 denomination bank notes, which constituted 21.3 per cent of the total bank notes in circulation as on March 31, 2022," the annual report for 2021-22 released on Friday said.

The Rs 500 denomination notes accounted for 31.1 per cent share at the end of March 2021 and 25.4 per cent as of March 2020. In value terms, these notes rose from 60.8 per cent to 73.3 per cent from March 2020 to March 2022.