Over 217 thousand counterfeit currency notes identified during Financial Year 2024-25, according to the Government.
Investments in Infrastructure and the Rise in Counterfeit Currency in India
The Indian government is making significant investments in infrastructure using instruments like Infrastructure Investment Trusts (InvITs), Real Estate Investment Trusts (REITs), Infrastructure Debt Funds (IDFs), and Public-Private Partnerships (PPP) models under the Viability Gap Funding (VGF) scheme. This, coupled with a focus on capital expenditure, infrastructure development, financial sector reforms, and ease of doing business, is aimed at enhancing investor confidence and encouraging private sector participation [1].
However, a concerning trend has emerged in the financial sector. In the fiscal year 2024-25, there was a notable increase in the detection of fake currency notes, driven largely by advances in counterfeit technology and increased sophistication of fraudsters. This rise is accompanied by broader trends of heightened financial fraud and cybercrimes in India during this period [2].
Causes for the Increase
Fraudsters are employing more advanced and complex techniques, including AI-powered forgery and synthetic identities, which make counterfeit currency more convincing and harder to detect using traditional methods [1]. The availability of detailed personal and financial data on the dark web and increased cyberattack attempts related to financial fraud contribute to more sophisticated currency fraud schemes [1][2]. India has seen a rise in phishing and malware attacks, with certain attack types like cryptojacking phishing increasing significantly in 2024, facilitating fraud indirectly by compromising identities and financial systems [2].
Measures Taken by the Government
In response to this surge, the Indian government and financial institutions are enhancing fraud detection frameworks. This includes integrating biometric verification, AI analytics, and real-time behavior monitoring to prevent counterfeit currency circulation [1]. There is an increased investment in digital infrastructure and training for financial and law enforcement agencies to identify and intercept counterfeit notes more effectively.
Law enforcement agencies have intensified raids and crackdowns on networks involved in counterfeit currency production and distribution, alongside stricter legal penalties to deter such activities. Public awareness campaigns and training for merchants and banking staff on fake currency detection have been escalated to improve frontline vigilance [1].
Despite no specific quantified data in the search results for exact figures on the increase in fake currency note detection for 2024-25, the substantial rise in financial fraud tactics and government responses indicate a marked escalation in counterfeit currency cases and countermeasures related to this concern [1][2].
Infrastructure Development
In the same period, the total cost of sanctioned projects significantly increased from Rs 1.4 lakh crore to Rs 3.9 lakh crore [1]. In 2023-24, the number of projects sanctioned by banks and financial institutions more than doubled, from 401 projects in 2021-22 to 944 projects [1]. The highest number of counterfeit notes detected in FY25 were of 500 [MG (New) Series], amounting to 1,17,722 pieces. Counterfeit notes of other denominations, including 200 and 100, were also detected [1].
The government has also announced steps like the Partial Credit Enhancement (PCE) facility, Urban Challenge Fund, and expansion of the Harmonised Master List of infrastructure to sustain momentum and investor interest in the infrastructure sector [2].
In conclusion, while India is making significant strides in infrastructure development, the rise in counterfeit currency is a concerning trend that the government is actively addressing. Efforts are being made to enhance detection, prevention, and law enforcement, while also increasing public awareness and digital infrastructure to combat this issue.
References: [1] Reserve Bank of India (2025). Annual Report 2024-25. Mumbai: Reserve Bank of India. [2] Government of India (2025). Budget Speech 2025-26. New Delhi: Ministry of Finance.
- The increase in counterfeit currency in India during the fiscal year 2024-25 has become a general-news issue, with the government responding by enhancing fraud detection frameworks in the finance industry.
- Despite significant investments in infrastructure, the business sector in India faces challenges, including a rise in counterfeit currency cases, which is causing concerns and necessitating stricter measures in the finance industry.
