RBI Data Shows Amount Of Fake Currency Insignificant
There has been a significant increase in the rate of fake currency note detection and number of suspicious transactions filed, reveals the Reserve Bank of India’s Annual Report for fiscal 2016-17.
RBI details what it calls a “nation-wide exercise to estimate the density of fake Indian currency notes (FICNs) detected during the counting and verification of notes”. And finds that detection of counterfeit notes was 20.4 percent higher in FY17 than the previous year. Despite the rise the total value of counterfeit notes amounted to an insignificant Rs 42 crore.
Data suggests the increase is in notes of Rs 500 and Rs 1,000 denomination. Interestingly, even the new Rs 2,000 notes, issued after demonetisation, are already being counterfeited. The report says 638 fakes of this denomenation were detected.
Using a two-step cluster sampling technique to estimate fake Indian currency notes (FICN) at currency chests and RBI, the central bank concluded the data “implies a significant pick-up in the rate of FICN (fake Indian currency note) detection at the Reserve Bank level in the post-demonetisation period as compared to a year ago.”
The central bank’s annual report also states there has been a “quantum jump” in the number of suspicious transaction reports filed with the government’s Financial Intelligence Unit