Fake currency: Curbing black money remains a big challenge

IN recent years, India has consolidated its position as the global leader in digital payments, accounting for nearly half of all real-time transactions worldwide. However, the ambitious shift towards a cashless economy is facing roadblocks. The government’s initiative to curb black money by discouraging cash transactions continues to be a work in progress. The RBI Governor has informed a parliamentary panel that 1.18 lakh currency notes of Rs 500 denomination out of a total of over 6 crore were found to be fake during 2024-25. As per the central bank’s annual report, the number of these notes has risen by more than 37 per cent in a year. This indicates that unscrupulous elements are cashing in on the demand for currency. And the menace persists despite frequent crackdowns by the Directorate of Revenue Intelligence on operators involved in importing security paper and printing fake notes.