Fake currency: Curbing black money remains a big challenge

IN recent years, India has consolidated its position as the global leader in digital payments, accounting for nearly half of all real-time transactions worldwide. However, the ambitious shift towards a cashless economy is facing roadblocks. The government’s initiative to curb black money by discouraging cash transactions continues to be a work in progress. The RBI Governor has informed a parliamentary panel that 1.18 lakh currency notes of Rs 500 denomination out of a total of over 6 crore were found to be fake during 2024-25. As per the central bank’s annual report, the number of these notes has risen by more than 37 per cent in a year. This indicates that unscrupulous elements are cashing in on the demand for currency. And the menace persists despite frequent crackdowns by the Directorate of Revenue Intelligence on operators involved in importing security paper and printing fake notes.

There is no doubt that UPI (Unified Payments Interface) has revolutionised India’s transaction ecosystem. The wide-ranging payment options have made the lives of Indian citizens a lot easier. However, there is still no dearth of people who are avoiding the digital route. The reasons for their cash fixation range from digital illiteracy to corruption and tax evasion. The government should work harder to bridge the digital divide and ferret out underhand dealers.

Intriguingly, currency notes of Rs 2,000 denomination are no longer in circulation, yet they continue to be a legal tender. A prompt call should be taken on this matter; the inordinate delay is undermining India’s efforts to promote a digital-first economy. It’s also worrisome that more than eight years after demonetisation, the real estate sector remains under suspicion for rampant use of black money. Greater scrutiny and strict enforcement of laws are a must to deter those who believe that “cash is king” even in the digital age.

Editorials