Flood of Fake Rs 500 Notes Alarms Nation

Reserve Bank of India (RBI) Governor Sanjay Malhotra revealed a surge in counterfeit Rs 500 notes, with a staggering 1.12 lakh detected in the 2024-25 financial year. This alarming figure underscores the growing challenge of tackling fake currency in the country.

The revelation came during a parliamentary panel discussion on Thursday, July 10, 2025. The meeting also addressed the continued legal tender status of the Rs 2,000 note, despite its withdrawal from circulation.

Discussions also centered on the RBI’s role in managing this escalating problem, the concerning decline in rural banking correspondents, and strengthening the oversight of the banking ombudsman.

The sheer volume of fake Rs 500 notes unearthed highlights the urgent need for enhanced security measures and stricter enforcement to protect the Indian economy. This issue directly impacts the financial stability of millions and demands immediate and decisive action from authorities.

Karanveer Sharma

A dedicated journalist and legal expert with a passion for uncovering the truth and advocating for justice. With hands-on experience in investigative journalism, legal research, and case analysis, I possess a strong ability to break down complex legal and societal issues into clear, impactful narratives. My work is driven by a commitment to transparency, integrity, and empowering people with accurate, insightful information.