So we have learned that making fake currencies is not always profitable especially if you are making coins. Making fake notes of Rs.500 and Rs.1000 is lucrative since the margin is quite large. However everyone, even your vegetable vendor checks those notes to see if they are real or fake. If I was making fake currency, I would avoid the coins for obvious reasons and also avoid the bigger notes to stay away from suspicion. If I was making notes, I'd go with the medium denomination and most frequently used notes, 50 or 100 buck would be my ideal choice.
Speaking about checking the notes, do you really think everyone who checks the 500 or a 1000 note can tell a good fake from an original? I guess not. I strongly suspect that they do it in an attempt to come across as a careful and sharp person so a person would think twice before handing him a fake not.
You tell me if you were faking notes, what denomination would you prefer.