Beware! Govt issues ‘high alert’ on fake ₹500 notes — Here's how to identify them

The Ministry of Home Affairs (MHA) has raised an alarm over the circulation of fake ₹500 notes. A ‘high importance’ alert was issued by the MHA with all the major financial and regulatory institutions in India, including Directorate of Revenue Intelligence (DRI), Financial Intelligence Unit (FIU), Central Bureau of Investigation (CBI), National Investigation Agency (NIA), and Securities and Exchange Board of India (SEBI).

How to identify fake notes?

These counterfeit notes have a striking similarity to the original ₹500 notes, with the only difference being a spelling mistake, according to a report by News18 citing the Home Ministry's notice. In the phrase ‘RESERVE BANK OF INDIA,’ the term ‘RESERVE,’ letter ‘E’ has been replaced with the letter ‘A’.

“This subtle mistake may go unnoticed without close inspection, making these counterfeits particularly dangerous," said a senior government official told News18.

The government has issued a high alert stating that a significant number of these notes are possibly being circulated. Additionally, the government has provided a picture of the fake note to help with the identification of such currencies.

The officials have urged financial institutions and citizens to be vigilant and report such fake notes. However, the report further states that no agency will be able to estimate the number of such counterfeit notes in circulation. The information available to the government is from other sources, such as counterfeit notes submitted by the public to the banks.

However, the number of counterfeit notes is much higher than what is submitted by the public. In the recent Parliamentary session, the government spoke about measures to curb counterfeit notes.

“Measures implemented include penal provisions under Bharatiya Nyaya Sanhita, 2023 (BNS) & Unlawful Activities (Prevention) Act, 1967 as well as constitution of National Investigation Agency (NIA), FICN Coordination Group (FCORD) and Terror Funding & Fake Currency (TFFC) Cell," the government said.