MHA Flags New High-Quality Fake Rs 500 Notes. Here’s How You Can Identify Them

SOURCE ; NEW18

Last Updated:April 21, 2025, 10:02 IST

The error is found in the phrase ‘RESERVE BANK OF INDIA’ where the letter ‘E’ in ‘RESERVE’ has been mistakenly replaced with the letter ‘A’

The Ministry of Home Affairs (MHA) has issued a ‘high importance’ alert regarding a new type of counterfeit Rs 500 currency note that has entered circulation. The alert, shared with key financial and regulatory institutions like DRI, FIU, CBI, NIA, SEBI etc, warns that the fake notes closely resemble genuine ones in terms of quality and print, making detection more difficult.

According to a communication reviewed by News18, the counterfeit notes bear a striking similarity to authentic Rs 500 notes, with only a minor but significant spelling error giving them away. The error is found in the phrase “RESERVE BANK OF INDIA” where the letter “E” in “RESERVE” has been mistakenly replaced with the letter “A”.

“This subtle mistake may go unnoticed without close inspection, making these counterfeits particularly dangerous,” said a senior government official while quoting the letter.

Financial institutions, banks, and related agencies have been placed on high alert, with indications that a large number of these counterfeit notes may have already entered the market. A photograph of the suspected counterfeit currency has also been circulated to assist with identification.

Authorities are urging citizens and institutions to be vigilant and report any suspicious currency.

According to a senior official involved in investigation of terror financing, it would not be possible for any agency to know how many counterfeit notes are in circulation. The only data available with the government is through different sources, which also includes counterfeit notes submitted to the bank by public. But, the number of counterfeit notes is much higher than those figures.

The government, in the recent Parliament session, had talked about measures implemented to curb counterfeit notes. “Measures implemented include penal provisions under Bharatiya Nyaya Sanhita, 2023 (BNS) & Unlawful Activities (Prevention) Act, 1967 as well as constitution of National Investigation Agency (NIA), FICN Coordination Group (FCORD) and Terror Funding & Fake Currency (TFFC) Cell,” it said.

To facilitate detection of counterfeit Notes, all bank branches/ identified back offices and the currency chest branches are equipped with appropriate banknote sorting/ verification/processing/ detection machines.