The menace of fake currency has hit the Indian economy very badly. There is an astonishing revelation that fake currency can be totalling to 1,69,000 crores, which may be a little difficult to digest. Even if it is a fraction amounting to 10,000 crores. It has a crippling effect on the monetary management.
The law is lax on the circulators of fake currency. Anyone in possession of fake currency is targetted as an offender. If one submits the fake currency for remittance in the bank he is hauled up. The bankers are duty bound to report the matter to their HO or controlling offices. Many a customers allow the banker to deface the notes or burn the currency rather than face the enquiry.

RBI has taken note of this menace and announced withdrawl of 500 and 1000 rupee notes of 1996 and 2000 series. It will be phased, which obviously means that people can quickly hide their black money too in the election year. Basically RBI states that there is no need to panic over withdrawl of the currency, it will be legal tender as long as it is original. If it is fake than god help the customer. Anyways blackmoney hoarders in bank lockers will be busy checking their currency from now onwards.

The way inflation is getting out of control is the prevalence of fake currency and black money in the economy, once stringent measures are unearthed to control their circulation, we can see the end of inflationary pressures. Counterfiet currency circulation is another form of terrorism unleashed by antinationals. Next time around please check your 500 & 1000 bucks carefully. Even ATM withdrawl get it re-confirmed by your banker immediately.