Protect Your Money: Identify Fake ₹500, ₹100 Notes with These Easy Tricks
Fake Currency Notes in India 2025: How to Identify and Avoid Them
In today’s economy, every rupee counts. But fake currency notes are increasingly circulating in Indian markets. According to RBI’s 2024–25 report, over 2.17 lakh counterfeit notes were detected, with ₹500 denomination notes making up 1.17 lakh of them. That’s a serious concern for consumers and small businesses alike.
Knowing how to differentiate between real and fake notes is now more important than ever. With advanced printing tricks, fake watermark imitations, and low-grade paper, counterfeiters are making it harder to spot the difference. But with the right knowledge, you can protect yourself.
How Fake Notes Enter the Market
- Fake notes do not come from ATMs, as banks strictly filter currency before loading machines.
- They usually enter circulation through small shops, change transactions, or local vendors.
- Counterfeit notes are printed using 90 GSM linen cotton paper, costing just ₹2–₹3 per note.
- In contrast, genuine notes are made from 98% pure cotton, offering durability and texture.

Key Features to Identify Fake Currency Notes
1. Security Thread (Shiny Line)
Earlier, fake notes lacked the shiny security thread. Now, some counterfeit notes mimic this feature. However, the real thread is embedded inside the note, not just printed on top.
2. Watermark
Hold the note against light. You should see:
- Mahatma Gandhi’s portrait
- Denomination number (₹500 or ₹100)
These watermarks are hard to replicate and are missing or blurry in fake notes.
3. Paper Quality
Genuine notes feel crisp and fibrous due to high-quality cotton. Fake notes feel smoother, thinner, and sometimes glossy.
4. Print Clarity
Real notes have sharp, clear fonts and colors. Fake notes often show smudged ink, misaligned text, or faded colors.
5. Use Digital Payments
To avoid fake notes altogether, prefer UPI, Google Pay, PhonePe, or card payments. Digital transactions are secure and traceable.
Read also : UPI Payments via ChatGPT: Safe, Smart & Game-Changing AI (Click here to know more)
❓FAQs: How to Identify Fake Currency Notes
1. How can I check the watermark in a currency note?
Hold the note against light. Look for Gandhi’s image and the denomination number in the white area.
2. Do fake notes have a shiny security thread?
Some do, but it’s usually printed on top. Real notes have the thread embedded inside.
3. Can fake notes come from ATMs?
No. Banks verify all notes before loading ATMs, so fake notes don’t enter through them.
4. What should I do if I receive a fake note?
Report it to your nearest bank or police station. Do not try to use it again.
5. What’s the safest way to avoid fake notes?
Use digital payments like UPI, Google Pay, or debit cards whenever possible.
🔗 External References
- News18 Guide to Spot Fake ₹500 Notes
- Amazon Currency Detector Machines
- RBI Annual Report on Counterfeit Notes