Millions of Rs 500 and Rs 1000 fake currency notes printed in Madhya Pradesh!!

Two senior officials posted at Security Paper Mill (SPM) in Hoshangabad district of Madhya Pradesh were suspended on Friday over production of millions of defective Rs 500 and Rs 1000 banknotes.


Around 80,000 defective Rs 500 notes and 10,000 defective Rs 1,000 notes produced by the mill has already hit the market, triggering panic among citizens. Security threads are missing in these notes, said an official at Hoshangabad mill. Magnetic security thread with inscriptions 'Bharat' and 'RBI' is the most distinguishing feature in an Indian currency note and prevents counterfeiting.

Union Finance Ministry has also demanded a report from the Madhya Pradesh government. A five-member team has been constituted to probe the matter and plug the loopholes which allowed the unethical act to be committed in the first place.

Meanwhile, the RBI has instructed banks to accept the fake notes of Rs 500 and Rs 1000, in which the magnetic thread (situated at the back part of note, in the white patch) is missing. The notes shall be readily be replaced so that the common people are not harassed.

Introduced in year 2000, the 1000-rupee notes contain a readable, security thread alternately visible on front with inscriptions 'Bharat' (in Hindi), '1000' and 'RBI'. This thread was missing in those notes.

According to sources, the total amount of fake currency notes printed at the SPM could be around 300 million.


Some of the measures taken by the government to prevent counterfeiting include:

1. Ministry of Home Affairs (MHA) has formed a special FICN Coordination Centre (FCORD) to share intelligence or information among different security agencies within India and abroad.

2.  A Terror Funding & Fake Currency Cell in the National Investigative Agency (NIA) will focus on terror funding & fake currency cases. The MHA has directed the law-enforcement agencies of the states, central armed police forces, ministry of civil aviation and the bureau of civil aviation security to augment security.

The RBI has launched a multimedia, multi-lingual awareness campaign, initially through Doordarshan channels, titled “Paisa Bolta Hai“. The short film tries to inform the common man about the measures of examining bank notes.

Watch it here:





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