How do you Spot a Fake Rupee?

Almost every country in the world face the problem of counterfeit currency notes, but in India the problem is acute as the country is hit hard by this evil practice. Fake notes in India in denominations of Rs.100, 500 and 1000 are being flooded into the system.

The Reserve bank of India estimates that there is at least Rs.2 trillion fake rupee notes in circulation throughout India. It is suspected that almost all of these notes originate from security presses located elsewhere.

A common person does not know what to do when he gets a fake rupee note. The best way to counter it is to know how to detect fake notes and prevent it from coming it into your hands.

Detecting a Fake Rupee Note

So how do you detect fake currencies in rupees? Here are some ways in which you can detect these notes.

  • Paper Quality – People who constantly deal in money can detect a fake rupee by mere touch, especially when counting money. The paper used for printing currency notes cannot be from a stationary shop. Genuine currency notes have a crispness and solidity to them that are absent in fake notes.
  • Visual Fake Currency Detection – There is a floral design printed on the left side of Indian currency notes. Half of the currency denominations are printed on the front of the note and the other half is printed at the back. If looked against a bright light, the whole of the denomination appears.
  • Immediately below the floral design, there is a mark printed in intaglio in which the image is in a slightly raised manner. This is for the aid of visually handicapped to differentiate between denominations. The intaglio print is a circle for Rs.500 note, a triangle for Rs.100 denomination and a square for Rs.50.
  • In the same manner a portrait of Mahatma Gandhi, a promise and guarantee clause, the RBI seal, the emblem of the Ashoka Pillar on the left as well as the signature of the RBI Governor are printed in intaglio.
  • A narrow band seen on the right of the rupee note displays the latent image of the denomination of the Indian bank note. This denomination is clearly seen when the banknote is held at eye level, horizontally.
  • A security thread with the inscriptions of RBI and ‘Bharat’ in Hindi runs along every banknote.
  • Machine Detection – The security thread present in all Indian currency notes fluoresces on either side if held against ultraviolet light.
  • All serial numbers of all rupee notes are printed using fluorescent ink that can be clearly seen if viewed against ultraviolet light.

For a detailed list of Indian Rupee security features, please visit RBI website.

There are many electronic gadgets (Fake Rupee Detectors) are available in consumer electronic shops to detect fake currency and it will cost anywhere between Rs.1500 and 4000.

Godrej, Klick and Methodex Systems make some of the most popular currency detectors. Specially made laser torches also are used to identify fake currency notes.

Here is video from Reserve Bank of India regarding security features of Indian Rupee.

What to do if you get a Fake Rupee?

If you get a fake note from an ATM or a bank or by withdrawal in person, you must make a complaint to the nearest police station and inform them of the source of the fake currency.

If the police officials cannot establish the bank mentioned in the complaint as the source of the fake money, it will be dispatched to the Reserve Bank of India for further investigations. If the bank note could be traced to a bank, it will destroy the fake note.

It may sound impractical, but checking each note before leaving an ATM or bank is the best method to prevent getting fake notes.

If you are handling hundreds of notes at a time, it may be wise to invest in an ultraviolet pen or currency detection devices. After all, it is your money and you are entitled to get original currency.

The Problems in Counterfeit Rupee Awareness

If a fake currency note finds its way into your hand and you are unable to explain from where you got it in the first place, you are liable to be jailed. Many people avoid dealing with such a problem legally for the simple reason that it is hard to deal with the police and the courts.

Another problem is that it is impossible to check every rupee note, especially if it is taken from a bundle of notes. So people just pass the notes along to others and in case someone finds out that the note is a fake they give another note. Most people in India do not know how to distinguish a fake currency note from a genuine note.

To make things worse, it is a legally punishable offense if you try to pass fake currency with the knowledge that it is not genuine. Sometimes the punishment can be as much as life imprisonment.

So what should one do to solve the problem that can confront us any time? There should be more awareness from our part about the legal implications and how to prove your innocence. We must also be extra cautious when dealing with money and always on the look out for these fake notes.

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2 Responses to “How do you Spot a Fake Rupee?”

  1. I don’t understand yet because there are too many things to read.

  2. Hi Ruata,

    You can watch the video for simpler instructions.

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