Indian Currency

Perhaps it is because the ATM only dispenses brand new INR500 notes we did have any hassles.

@9. they dont do it because its your note. so your responsibility. something on those lines i guess.

The govt is using the counterfeit racket (by no means a small affair) to push for more electronic transactions by credit/debit/EFT etc.

This not only helps reduce circulation of paper currency but also will bring more and more transactions under the tax net.

So while there is no conspiracy theory here, there is a silver lining in disguise for the general state of the economy.

also will bring more and more transactions under the tax net

The one big area that, if at least mostly fixed, will have everyone looking at India in a very different way.

Roughly on topic, it's written that you can't bring INR 500 or 1000 notes to Nepal (due to counterfeit issues). In practice, all the "little guys" will change your money, and only the North Face company store would not take the notes. I would guess other large, reputable operations would be the same.

the little guys are the owners of the shops in most cases or someone closely in the "family" so they are highly motivated to check for fakes. any loss is their own personal loss.
Plus they have done the math for cash transactions v/s trackable ones.

the big stores have employees who may not necessarily have the training or motivation to check for fakes. so they just decide to not accept it. plus they do not really not report transactions.
:)

As they're, it is wise to see all the notes you recieve back as balance from a shop/supermarket. Ask them for a different note and they'll oblige.

Yes, as others have said, this is a major problem and can get quite bugging. Always check the notes. Last year, in my cities's TOI people siad, they got fake notes from ATMs, too!

You gotta laugh ! I tried to exchange 4 x AUD$50 in February and the guy refused to take one of them because it had the tiniest of tiny bits missing from one corner. Apart from that they were all brand new, shiny polymer notes. He refused point blank and got all officious about it, but when he gave me my R6000 in 500's most of them had writing on them, several were torn or had bits missing, they all had staple holes and half were pretty dirty. when I asked for notes similar in condition to the ones I had exchanged, he said "everything is possible in India, but not what you ask !"

"everything is possible in India, but not what you ask !"

Words to live by..