How To Identify Fake Currency Notes Easily?

While the RBI has employed various security measures to deter counterfeit currency, the circulation of fake currency in India continues to remain a serious problem. The presence of counterfeit currency impacts economies and individuals alike. 

This makes it crucial for you to learn to spot fake currencies to avoid losing money. To know how to identify fake currency and the factors to keep in mind, read on.

Observe the Micro Lettering

This can act as a strong defence mechanism against counterfeiting. The topography and tiny letters on the paper near the image of Mahatma Gandhi make a vast difference. For most people, the naked eye can’t see these differences. However, you can follow these steps to identify fake currency:

• Take a magnifying glass 
• Focus near the orchestra and on the words, ‘Reserve Bank of India’
• The lowercase letters should be sharp, clear and consistent
• This appears as a continuing line of tiny letters, mostly characters

While fake currency makers try to mimic the pattern, there will be something different about them. This may be inaccuracy, false labelling or missing details. 

Notice the Details of Mahatma Gandhi’s Image

You can identify a fake currency by paying attention to the outline of Gandhiji’s image. It is also referred to as the watermark. Fake currency makers often use grease or thick oil to outline the image. For this reason, the watermark looks thicker than usual. You can check the note under a light source to identify such factors. 

Examine the Quality

Cotton and linen make up the authentic currency note; if you feel any other material, it may be a fake. The numbers and all the print on the note are crisp and clear. Nowhere does the ink bleed into another element.

Check the Security Threads

The embedded security thread is the small woven yarn appearing through the currency paper. It’s only used by the RBI and contributes to the unique identification of valid and original currency. Most scammers print this on top of the note, making it easy to catch fake ones.  

It also has ‘Bharat’ written in Devanagari script with alternating ‘RBI’ lettering.  You can hold the note in front of a plan surface against the light to identify it. It will shine with a holographic reflection.

Also Read: Fake Loan Apps

Check the Formatting and Serial Number

The original currency has a proper sequence of numerical figures. When it comes to fake currency, there may be a poor alignment of the numbers or inconsistency in the size of the figures. That can be a clear indication of a fake note.

The original currency also has unique serial numbers that are not repeated. Something is fishy if you find the numbering in uneven spacing or size. This can help you find any fake note when you receive cash in a bundle.

Check the Printing

The Indian currency has a specific kind of printing that gives a raised effect on the note. You can feel the effect by running your finger on the note. If your note has flat printing or doesn’t have the raised effect, it is probably fake.

Apart from these, you can simply check the originality by comparing it with an original note. While comparing, consider the factors like colour, texture and print quality. These components can give you a better idea at the time of inspection on how to identify fake currency. When you receive fake currency in India, report it to your local authorities and retain the note. 

Fake Indian Currency Note

A counterfeit currency has a passing resemblance to a real bank note. Here is an example for your reference:

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FAQs on Spotting Fake Indian Currency Notes

How can I identify the colour-shifting ink on Indian currency notes?

This feature is particularly designed for ₹2,000 and ₹500, as it appears green when the note is held flat. However, when held at an angle, it changes to blue.

What are the differences between the old and new series of Indian currency notes?

Features like watermarks and security threads distinguish the old from the new Indian currency.

How do I report counterfeit currency to the authorities?

When you receive counterfeit currency, report it to your local law enforcement agency. 

What are the legal consequences of using fake currency in India?

Under IPC Section 489C, any offence related to fake currency in India can attract a fine or imprisonment ranging from seven years to life imprisonment or both.