oppn parties Fake Notes: Where Have They Vanished?

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  • In a first, the Supreme Court recognizes marital rape, although for the limited purpose of allowing married women the right of abortion up to 24 weeks if they conceived as a result of forced sex by their husbands
  • Air India cuts discounts on base fare to students and senior citizens from 50% to 25%
  • Mallikarjun Kharge and Digvijay Singh are being touted as frontrunners to take on Shashi Tharoor in the elections for the post of Congress president
  • Sonia Gandhi will decide who will be Rajasthan CM if she feels there is a need to change guard after the near-rebellion by MLAs in the state
  • Ashok Gehlot bowed out of the race for being Congress president after meeting Sonia Gandhi
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  • DGGI has alleged that top insurance companies, banks and NBFCs has committed a fraud of Rs 800cr by claiming input tax credit without underlying supplies
  • The Centre will borrow Rs 10000cr less than planned earlier due to good revenue collections
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  • The 36th National Games were declared open on Thusrday by PM Modi in front of a record crowd in Motera near Ahmedabad
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  • PFI's political wing, the SDPI is on EC radar and action will follow soon if discrepancies are detected
  • Ashok Gehlot to meet Sonia Gandhi today, says all issues will be sorted out soon
  • Referring to the PFI ban, most Muslim organizations ask the government to take similar action against right wings organizations like the RSS, Bajrang Dal, VHP and the like
In a landmark order, Supreme Court rules that all women, married or unmarried, are entitled to safe and legal abortion up to 24 weeks of pregnancy as per the MTP Act
oppn parties
Fake Notes: Where Have They Vanished?

By Sunil Garodia
First publised on 2016-12-05 09:47:46

About the Author

Sunil Garodia Editor-in-Chief of indiacommentary.com. Current Affairs analyst and political commentator.
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.