High Alert Over Circulation of Counterfeit ₹500 Notes — Here's How to Identify a Fake

MHA Notifies Banks and Financial Agencies Amid Rising Incidents of Near-Perfect Fake Currency

April 22, 2025 — The Ministry of Home Affairs (MHA) has issued a nationwide high alert after the discovery of high-quality counterfeit ₹500 currency notes circulating in Indian markets. The alert was shared with key regulatory and law enforcement agencies including the Directorate of Revenue Intelligence (DRI), Financial Intelligence Unit (FIU), Central Bureau of Investigation (CBI), National Investigation Agency (NIA), and the Securities and Exchange Board of India (SEBI).

According to a safety circular shared with various agencies, the fake notes are strikingly similar to genuine ones in terms of print quality, color, and size, making it difficult even for experts to detect them at a glance.

What Makes These Counterfeit Notes Hard to Detect?

The newly identified fake ₹500 notes are so well-made that they closely mimic the real currency in ink color, font size, and tactile features. The only notable flaw, as reported by News18, is a critical spelling error — the fake notes read “RisArve Bank of India” instead of the correct “Reserve Bank of India.” This minor but telling inconsistency is currently the primary means of identification for the general public.

The Home Ministry has warned that these counterfeit notes have already infiltrated the Indian economy in large volumes, posing a potential threat to financial security and consumer trust.

How to Verify If Your ₹500 Note Is Real or Fake

Here are steps you can take to identify a fake ₹500 note:

• Check the spelling of “Reserve Bank of India” — counterfeit notes may spell it incorrectly as “RisArve”.

• Examine the ink color and font size carefully under good lighting.

• Avoid quick cash transactions without verifying notes, especially during high-volume exchanges in markets or weddings.

Banks and financial institutions have also been directed to be on heightened alert and report any suspicious currency immediately to regulatory bodies.

Government’s Response and Public Advisory

In light of the alert, all Indian banks and financial institutions have been asked to intensify currency verification protocols, especially at high-volume counters. The public is also advised to exercise extreme caution while accepting ₹500 notes, particularly from unknown sources.

The alert comes amid rising concerns about cross-border smuggling of counterfeit currency and its potential to disrupt India’s cash-based transactions during the ongoing wedding season.

The government urges citizens to report any suspected fake currency to the nearest police station or bank branch and refrain from passing it on to others — a punishable offense under Indian law.