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MHA Issues Alert on High-Quality Fake Rs 500 Notes, Highlights Spelling Error as Key Identifier

by TLAteam April 22, 2025April 22, 2025
written by TLAteam April 22, 2025April 22, 2025
MHA Issues Alert on High-Quality Fake Rs 500 Notes, Highlights Spelling Error as Key Identifier

Following intelligence reports, the Ministry of Home Affairs (MHA) issued an alert on Monday, warning all financial regulators, enforcement agencies, and banks dealing in cash about the circulation of “high-quality counterfeit Rs 500 currency notes.”

Business News

According to a media report, in its alert, the MHA highlighted a key difference between the fake and genuine notes, noting that while the counterfeit notes closely resemble the real ones, there is a “spelling error” in the phrase “RESERVE BANK OF INDIA.” Specifically, the letter ‘A’ appears in place of ‘E’, they said.

Officials have classified the alert as “high importance,” with communications sent to critical financial and regulatory institutions, including 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 various banks. They were warned that the counterfeit Rs 500 notes are nearly identical to genuine ones in terms of quality and print, making them difficult to detect—aside from the misspelling in the phrase “RESERVE BANK OF INDIA,” where the letter ‘A’ replaces ‘E.’

Describing the spelling error as “very subtle” and easy to overlook, officials said that institutions handling currency have been urged to stay on high alert, as intelligence reports indicate that counterfeit notes may have already entered circulation. A photograph of the suspected fake currency has also been shared to assist in its identification, they added.

The government has urged the public to stay vigilant and report any suspicious currency to the authorities without delay.

When asked about the potential volume of counterfeit notes in the Indian market, a senior investigative official stated that once fake notes are in circulation, no agency can precisely determine their quantity. This is because data on counterfeit currency is gathered from various sources, including notes submitted by the public to banks. However, he noted that the actual number is likely much higher than the reported figures.

In a recent response in Parliament, the government outlined the measures it has implemented to combat counterfeit currency.

The government stated that the measures to combat counterfeit currency include penal provisions under the Bharatiya Nyaya Sanhita, 2023 (BNS), and the Unlawful Activities (Prevention) Act, 1967. Additionally, the National Investigation Agency (NIA), FICN Coordination Group (FCORD), and the Terror Funding and Fake Currency (TFFC) Cell have been established to address the issue.

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