Even after the demonetization exercise, the country is flooded with fake currency while over the last year, the counterfeit currency in circulation has reduced by almost 30%. The RBI's latest annual report for FY 2020-21 dated May 27, 2021 points to 31% jump in the number of fake Rs. 500 notes in the country.
Now of the total counterfeit currency, 3.9 percent were detected by the RBI while the remaining 96 percent were found out by other banks including private, public and cooperative banks..
Meanwhile, there is stated that currency in other denominations have seen a decline in the number of counterfeit currency.
2,87,404 currency notes worth as much as Rs. 25.3 crore were seized under Fake Indian Currency Notes (FICN) in 2019 - an increase of 11.7% over the previous year.
Currency note of Rs. 500 denomination is the most widely circulated
Rs. 500 note is the most widely circulated currency in the country accounting for as much as 68 percent and together with Rs. 2000 currency note, i.e. the second most circulated currency, they together account for an over 85% currency supply.
No fresh supply of Rs. 2000 note for FY 2021-22
The Reserve Bank of India also in its annual report pointed that it would not be making available any fresh supply of Rs. 2000 currency note. The same was also not added in the previous year also.