Security threads recycled into fake Indian banknotes

Counterfeiters in India are removing the security threads from smaller denomination that are no longer legal tender and inserting them into fake 2,000 rupee notes.

There is still a thriving black market for older 500 and 1,000 rupee banknotes that were removed from official circulation in 2016 as part of India’s demonetisation programme as part of a crackdown on the shadow economy and illicit trade.

Local news report suggest organised crime gangs are buying up the defunct notes with the involvement of corrupt banking professionals. Last week, a man suspected of involvement in the scam was shot dead by police in Mysuru, a city in India's southwestern Karnataka state.