Is your Rs 500 note real? Home ministry issues guidelines to check for fake currency, here's how to check

A 'high alert' has been issued by the Ministry of Home Affairs (MHA) concerning a new Rs 500 counterfeit note that has already entered the market. This alert has been sent to key financial and regulatory bodies such as the Directorate of Revenue Intelligence (DRI), Financial Intelligence Unit (FIU), Central Bureau of Investigation (CBI), National Investigation Agency (NIA), Securities and Exchange Board of India (SEBI), and others. The alert also emphasises the resemblance between these fake notes and authentic ones.

How to identify fake notes?

Identifying a fake Rs 500 note is challenging due to the similarity in quality and print to genuine notes, making it difficult for the average person to detect. Especially during quick transactions, the government faces challenges in identifying these notes. However, a specific error in the counterfeit notes can aid in their identification.

In the phrase "RESERVE BANK OF INDIA," the letter "E" in "RESERVE" has been incorrectly replaced with "A." This subtle error is a key indicator of counterfeit notes, helping to prevent potential financial loss.

"This subtle error might go unnoticed during casual transactions, posing a significant risk," a senior government official stated, according to media reports.

Alert by MHA

A high alert has been issued by the Ministry of Home Affairs (MHA), prompting financial institutions, banks, and related agencies to be vigilant, with the assumption that a significant number of these fake notes are in circulation. Photographs of the suspected counterfeit currency have been distributed to assist in identification by individuals and institutions.

Authorities have urged citizens and financial entities to remain vigilant and report any suspicious currency immediately.

The exact volume of counterfeit notes in circulation remains unknown, according to a senior investigator involved in terror financing cases. Government data is derived from counterfeit notes deposited by the public in banks, but the actual numbers may be higher.

The government has implemented various measures to combat fake currency, including penal provisions under the Bharatiya Nyaya Sanhita, 2023 (BNS) and the Unlawful Activities (Prevention) Act, 1967 (UAPA). The formation of bodies such as the National Investigation Agency (NIA), the FICN Coordination Group (FCORD), and the Terror Funding & Fake Currency (TFFC) Cell has been crucial. All bank branches, designated back offices, and currency branches are equipped with advanced banknote sorting, verification, and counterfeit detection machines to improve the identification of fake currency.