Axis Bank has discovered Rs 4.63 lakh in counterfeit currency at its Meerut currency chest during a routine audit. The fake notes, totaling 1,323 pieces across various denominations, were identified in cash deposits from 186 branches. Police have registered an FIR as authorities investigate how these forgeries bypassed internal security and verification systems.
Axis Bank has uncovered counterfeit currency worth Rs 4.63 lakh at its currency chest in Meerut, raising questions about internal security protocols for cash handling. The discovery involved 1,323 fake notes of various denominations ranging from Rs 50 to Rs 500. This discrepancy was identified during an internal audit of cash deposits collected from 186 connected branches between December 2024 and December 2025.
The bank has formally reported the matter to the police, and an FIR has been registered under the Bharatiya Nyaya Sanhita. Local authorities are now investigating how these forged notes managed to pass through the bank's screening systems without being caught earlier.
This incident highlights operational challenges banks face in ensuring the integrity of physical cash deposits. While financial institutions, including Axis Bank, are required by Reserve Bank of India (RBI) guidelines to deploy advanced note authentication machinery, the presence of these forgeries suggests potential gaps in the enforcement of these security mandates at the branch level.
This is not an isolated event in the banking sector. Similar concerns regarding cash security were highlighted by a larger case in Saharanpur, where a Punjab National Bank facility reported the discovery of fake currency worth Rs 17.29 crore. For banks, such incidents can lead to closer regulatory scrutiny and may require higher spending on upgrading surveillance and authentication infrastructure.
The primary challenge for the bank remains identifying the specific branches or cash transit points where these forgeries entered the mainstream banking system. Investors and stakeholders will likely monitor the outcome of this investigation and any subsequent changes the bank might introduce to its internal cash verification and audit processes.