Fake Rs 2,000, 500 notes are entering India through Bangladesh, three months after the newly minted banknote was introduced as an upshot of the Narendra Modi government’s demonetisation drive to fight corruption, counterfeiting and terrorist funding.
But multiple confiscations of counterfeit Rs 2,000 notes over the past three weeks have undermined the shock recall of 500- and 1,000-rupee notes last November, wiping out 86% of the money in circulation in a cash-driven economy.
The demonetisation exercise has been called a watershed for a country saddled with counterfeiters pushing millions of fake notes into the Indian economy from neighbouring Pakistan, Bangladesh and Nepal. Terrorists and governments hostile to India use the bogus cash to weaken the economy.
The latest attempts to restart the vicious cycle after the notes ban have set off alarm bells in the security establishment.