Atanu Dey On India's Development

Be aware of fake Rs 500 bank notes

Today I was at the bank depositing some cash when the teller discovered that one of the Rs 500 bills I gave her was fake. Visual examination did not reveal that the bill was counterfeit; only under UV light can one make out that genuine bills have a silver line which glows while the same line on a fake bill does not glow.

One of the simplest ways of undermining an economy is to introduce a huge amount of fake currency. From time to time, one hears of counterfeiting operations in Pakistan. I suppose the Pakistani terrorists operating in India get paid in fake Indian currency. What a wonderful way to kill (sic) two birds with zero stones. And I presume that some of the billions of rupees of fake currency circulating in India is brought into the country via the bus and train service between Pakistan and India.

I don’t have any proof, but my suspicion is that certain political parties in India gain from this sort of transactions.

In any event, please pass the word along that accepting Rs 500 (and perhaps Rs 1000) bank notes may be risky. If people are vigilant, the fake bills will not be able to enter the system.

  • Guru Gulab Khatri

    And I presume that some of the billions of rupees of fake currency circulating in India is brought into the country via the bus and train service between Pakistan and India

    Internationaly it can also come in through the gulf states.
    PS what about smaller denominations being fake, chances are that they are spent quickly, if i were to do it i will apply the BOP(bottom of pyramid) model.
    Most people dont carefuly look at smaller bills.

  • Harsha

    I’ve been long thinking what if we do with a currency note of max. denomination Rs.100 in M1.

    It helps reduce block economy a little bit and lets people go to bank for all large transactions.

  • http://parvativetri.blogspot.com Parvati

    Can fake notes of any denomination wander about the country? 10,20,100, or are there fakes only in 500 or 1000 rupee notes? What can be done if it is possible for the malady to spread to the lower denominations too?

  • Subrat Mishra

    The reason u r unlikely to see any fake bills of lower denominations is quite simple – people who print them arnt fools. the cost of printing a Rs.1000 bill & a Rs.20 bill would, I guess be almost the same, so if u were churning out those fakes where would you put your money??

  • http://saravade.livejournal.com/ Nandkumar Saravade

    As luck would have it, there have been a few exemplary convictions in fake note cases at various places in India in recent times, which given our track record in prosecuting crimes, is quite a welcome news. More details at http://saravade.livejournal.com/25064.html

    Atanu’s response: So what would happen if I were to be passed a fake bill and when I go to the shop, the shopkeeper turns me over to the police? I did not manufacture the bill at home and the fake ones in circulation are darned difficult to tell from the real ones unless one is lugging around equipment which can distinguish the two?