oppn parties Fake Notes: Where Have They Vanished?

News Snippets

  • S Jaishankar, Minister of External Affairs, says Pakistan should release and repatriate Kulbhushan Jadhav immediately
  • Karnataka Governor Vajubhai Vala asks the Speaker to hold the trust vote latest by 1.30 pm today
  • The Government sends a list of 24 questions to mobile app company that runs video app TikTok seeking answers for anti-national and obscene content carried on the platform
  • Sarvana Bhawan founder P Rajagopal, serving a life term for murder, dies in a Chennai hospital
  • SC allows time till July 31 to the Ayodhya mediation panel
  • IT department attaches "benami" plot worth Rs 400cr in Noida. The plot allegedly belongs to BSP leader [email protected]@@s brother and his wife
  • Dawood [email protected]@@s nephew, Md. Rizwan Iqbal, was arrested from Mumbai airport as he was waiting to board a flight to Dubai
  • Trouble brews in Bihar JD(U)-BJP alliance as Bihar police asks special branch officers to keep tabs on RSS activities
  • Trust vote in Karnataka assembly today. With rebel MLAs deciding to stay away after the SC order, the Congress-JD(S) government is likely to fall as it does not have the numbers
  • Amit Shah says the government will identify and deport illegal immigrants from all parts of the country
  • Reports from Pakistan confirm that Hafiz Saeed has been arrested and sent to jail
  • After the SC order, Karnataka Speaker says he will go by the Constitution in deciding on the resignations of the 16 MLAs
  • Rebel MLAs say they will not attend the trust vote on Thursday
  • Supreme Court rules that rebel MLAs cannot be forced to attend the assembly and vote in the floor test
  • Both the Centre and the Assam government have sought re-verification of up to 20% of draft NRC data
International Court of Justice agrees with India, stays Kulbhushan Jadhav's execution. It asks Pakistan to allow consular access to the accused.
oppn parties
Fake Notes: Where Have They Vanished?

By Sunil Garodia

About the Author

Sunil Garodia Editor-in-Chief of indiacommentary.com. Current Affairs analyst and political commentator. Writes for a number of publications.
The biggest worry emerging out of demonetization is the insignificant detection of fake notes. One of the avowed aims of the scheme was to rid the economy of these notes that were pumped in by Pakistan to destabilize the economy. But with nearly four weeks gone and more than Rs 10 lakh crore of the Rs 1000 and Rs 500 currency notes back in the banks, just 3.4% fake notes in quantum, having a face value of Rs 9.63 crore, have been returned. This can be a deceptive figure for two reasons. One, some banks are very lax while receiving the notes. Due to extreme work pressure, tellers are just counting the notes in machines and not seriously checking them for genuineness. This might mean that out of the Rs 10 lakh crore scrapped notes lying in store houses across the country, a huge percentage might be fake. Two, whenever the banks are finding one or two fake notes in a bundle, they are returning the same to the depositor after stamping them as “forged note” on both sides (see the lead picture of this story). No record is kept of such returned notes. Hence, banks are not in a position to record or inform the number of fake notes they have detected post demonetization.

The exact number of fake notes can never be ascertained for the simple reason that what we know are official figures of the currency in circulation. The number of fake notes said to be in circulation are just guesstimates and vary widely. The actual figure could be much higher or even much lower. We will never come to know that because they have already escaped detection and are lying in warehouses pending to be destroyed or have been returned to depositors who might have destroyed them. Hence, one aim of demonetization will always remain cloudy. The government will never be able to judge what actually happened to the fake notes and how many were actually in circulation.