Financial misinformation is not new, but digital platforms amplify it. Using historical and contemporary examples, discuss the role of financial literacy and regulatory communication in countering currency-related frauds.

Currency frauds use the gap between a coin's legal value, which is fixed by statute, and what the public believes it is worth. The pattern has stayed the same for a century. What has changed is how fast and how far the rumour travels. Countering it needs both an informed public and a regulator that speaks clearly.

Misinformation then and now

• Colombo, 1926: a rumour said the Treasury would pay Rs. 2 for every 1924-dated copper cent, claiming gold had been mixed into them. Many people turned up to claim the money, and boutique keepers profited by selling 1924 cents [1].
• Digital era: fraudsters use the RBI's name and logo to demand "charges, commission or tax" for buying and selling old notes and coins through online and offline platforms [3].
• Reverse rumour: some traders refused ₹10 coins, suspecting they were fake. Having 14 different designs in circulation added to the doubt [4].
• Amplification: word of mouth has become viral forwarding, and an official-looking logo now makes a fake offer look credible.

Role of financial literacy

• Token vs intrinsic value: a coin is legal tender under Section 6, Coinage Act, 2011 only for its face value. Defaced coins lose that status [2]. No issuer buys back its own money at a premium.
• Knowing who is responsible: the Government mints coins and the RBI only distributes them. The RBI does not deal in old coins [2]. Knowing this defeats any "official buyer" claim.
• Limits: literacy protects only people it reaches. Sellers make their money as soon as a buyer believes the story [1].

Role of regulatory communication

• Pattern-level warnings: the RBI's caution of 4 August 2021 covered all fake old-currency offers, not just one rumour [3].
• Action as proof: the RBI told all bank branches to accept coins, alongside its public clarifications of 2016 and 2018 [4].
• Last-mile network: 2,691 currency chests and 2,299 small coin depots let the regulator's message reach the public in practice [2].

Currency trust rests on law, but rumours can erode it faster than the law can defend it. Financial literacy drives, clear and prompt RBI messaging, and platforms taking down impersonation content together can keep public faith in money intact. That faith is essential to financial inclusion and SDG 8.10.