oppn parties Fake Notes: Where Have They Vanished?

News Snippets

  • In reply to a question in Parliament, the government says it is empowered to lawfully intercept, monitor or decrpyt information stored in a computer resource in the interest of sovereignty or integrity of India
  • Police stop a 12-year old girl on her way to the Sabarimala shrine
  • In Karnataka, the JD(S) indicates that it might support the BJP government if it falls short of numbers after the bypolls
  • Congress pips the BJP in local body elections in Rajasthan, winning 961 wards to the BJPs 737
  • After Airtel and Vodafone-Idea, Jio also indicates that tariffs will be raised from December
  • Sources in Shiv Sena say that they might revive the alliance with the BJP if it offers the 50:50 deal
  • A miffed Sanjay Rout of the Shiv Sena says that it will take "100 births" to understand Sharad Pawar
  • Mobile operators Vodafone-Idea and Airtel decide to raise tariffs from next month
  • Sharad Pawar meets Sonia Gandhi and says more time needed for government formation in Maharashtra
  • Justice S A Bobde sworn in as the 47th Chief Justice of India
  • Supreme Court holds hotels liable for theft of vehicle from their parking area if parked by valet, says "owner's risk" clause is not a shield from such liability
  • Finance Minister says she is receiving feedback from many sectors that recovery is happening as there is lower stress
  • Sabarimala temple opens, but police bar the entry of women below 50 years
  • Finance Minister Nirmala Sitharaman says Air India and BPCL to be sold off by March
  • Media person Rajat Sharma resigns as DDCA president
Two Muslim litigants in Ayodhya refuse to accept the Supreme Court order, say review petition might be filed
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.