India's banknote crisis has plumbed new depths of farce after a cash machine in Delhi began issuing fake money, apparently from a toy shop.

The owner of a cash delivery company has been arrested after the machine in southern Delhi dispensed 2,000-rupee (£24) notes stamped by the "Children Bank of India".

When customers complained, police initially believed that they had uncovered a counterfeiting scam. Further inspection revealed that the fakes could be purchased in most toy shops. The notes all bore the serial number 000000.

The incident has again fuelled criticism of the decision by Narendra Modi, the prime minister, to scrap the 1,000-rupee and 500-rupee notes overnight in November in an attempt to prevent tax evasion.

The country was thrown into chaos as panicked Indians lined up outside banks to exchange now-worthless cash savings, and much of the economy ground to a standstill. For several days India's most valuable note was the 100 rupee, worth £1.20.

Accusing him of exchanging five original Rs 2,000 currency notes with the 'Children's Bank of India' notes, Delhi Police has arrested a 27-year-old man who worked at an ATM cash loading company in connection with the fake notes that were dispensed by an SBI cash machine earlier this month.

The 27-year-old accused, Mohd Isha, had been employed with a logistics and cash management firm for over a year. He was the custodian of the cash deposited in the SBI ATM in Sangam Vihar on the day the bogus notes were dispensed.

Romil Baaniya, DCP (South-East), alleged that their investigation pointed towards Isha's role in replacing the notes. "No one else had access to the notes that day. He removed five genuine notes and replaced them with the bogus notes which are easily available in the market and are used by children for playing purposes," Baaniya said.

To read the complete article, see:
Children Bank of India: Cash loader held for fake Rs 2,000 notes in Delhi ATM(www.hindustantimes.com/delhi/children-bank-of-india-atm-cash-loader-arrested-for-replacing-rs-2000-notes-in-south-delhi/story-h0Vrc4YpD1Pv1Xrw8PjgyO.html)

To read the complete article, see:
ATM issues toy money as cash crisis deepens(www.thetimes.co.uk/article/atm-issues-toy-money-as-cash-crisis-deepens-hwt7lpl6f)