New Delhi, August 7, 2026 (Yes Punjab News)
Indian security agencies have detected a shift in the strategy of counterfeit currency networks, with criminal syndicates allegedly moving away from high-value fake notes and focusing increasingly on lower denominations such as Rs 10, Rs 20 and Rs 50 notes.
Counterfeit currency operations have long been linked to organised criminal networks, including those associated with fugitive gangster Dawood Ibrahim. Security agencies have alleged that Pakistan’s Inter-Services Intelligence (ISI) has supported such networks as part of efforts to disrupt India’s financial system.
Officials said the circulation of fake Rs 500 notes has declined significantly in recent times, indicating a change in the approach adopted by counterfeit currency handlers. Earlier, networks primarily targeted higher denominations, particularly Rs 200 and Rs 500 notes.
An Intelligence Bureau official said agencies have received inputs suggesting that Pakistan-based networks are attempting to increase the circulation of counterfeit lower-value currency notes in India.
“There are multiple reasons behind this newfound strategy. These elements are aware that people are extremely cautious about notes above Rs 100 denomination and will conduct a detailed check before accepting them. However, that is not the case when it comes to smaller denomination notes,” the official said.
Officials explained that people generally carry out fewer checks while handling smaller denomination currency during routine transactions, making such notes easier for criminals to circulate in large volumes without immediate detection.
According to security agencies, the period leading up to April 2027 could witness increased attempts by these networks to push counterfeit lower-denomination notes into circulation.
The agencies believe the strategy is also linked to India’s planned introduction of polymer banknotes. The Reserve Bank of India (RBI) has announced plans to introduce polymer currency notes in Rs 10 and Rs 20 denominations by 2028.
Officials said polymer notes, which are expected to last nearly four times longer than traditional paper currency, will also include advanced security features, making them significantly harder to counterfeit.
The new currency substrate will allow the integration of features such as transparent windows, specialised metallic elements and micro-optic holograms, which are difficult to replicate using conventional methods.
Security officials suspect counterfeit networks may attempt to increase the circulation of fake smaller denomination notes before the introduction of polymer currency. Once the transition is complete, agencies expect criminals to potentially shift focus towards other commonly used denominations.
The RBI has repeatedly advised citizens to remain vigilant while handling currency notes and use security features to identify genuine banknotes. Officials noted that although smaller denomination notes have lower monetary value, their frequent use in daily transactions makes them attractive targets for counterfeit operations.
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