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One of the wars that Reserve Bank of India has actively and persistently helped with the government in is that against counterfeit currency notes. It is one of the instruments of the silent war that terror elements wage relentlessly against India to weaken the financial system of the country. Over the decades, fake notes have tormented successive governments and the central bank alike. They are a menace since they destroy value of whoever accepts these notes.

In FY21, the year when the economy was crippled by the pandemic, the circulation of fake notes dipped by as much as 30%, a huge drop by any standards. The data has been shared by RBI in its annual report. The bank has conducted extensive awareness campaigns to inform the public about the safety features of genuine currency notes and how the people should recognise fake notes.

The origin of most fake notes is beyond the borders of India. Interestingly, those who print these fakes have also tried to upgrade their technology to that they can copy the news security features that RBI incorporates as closely as possible. So relentless was their efforts that within a few weeks of the demonetisation and printing of new notes in India, did fake currency notes appear in the country.

The sharp reduction in the numbers might have something to do with the lockdown and movement restrictions. However, it has also much to do with better policing of the international borders, where couriers, including school going children, are used to carry fake currency notes into the country. Strict vigil on the borders can effectively bring down the number of notes infiltrating the economy.

Increasing adoption of digital transaction methods is also a disincentive to the circulation of fake cash. Whatever the long and short-term reasons, the administration must keep up the war against this financial menace.