A diplomatic row has broken out between India and Pakistan over allegations that counterfeit currency was used by a member of staff of the Pakistani High Commission to pay private school fees in Delhi.

Pakistan has dismissed the allegations as utter nonsense but police in Delhi say they are looking into the case.

A Pakistani statement says it summoned the acting Indian High Commissioner in Islamabad to the foreign ministry to lodge an official protest.

The principal of a Delhi private school sparked this row when he informed the police that he had received a fake 500 rupee note from a staff member of the Pakistan High Commission.

The note was used to pay school fees. Police have said they are looking into the allegations.

Despite this denial, the morning's national newspapers in Delhi give the story great prominence, displaying pictures of what is said to be a counterfeit note.

Fake notes

There have been a number of official warnings recently that the new 500 rupee note has been widely counterfeited.

Indian media reports have quoted government officials as accusing Pakistan of printing fake notes on a press near the northwestern Pakistani city of Peshawar.

There are also reports that Nepal recently expelled a Pakistani diplomat who was suspected of having huge quantities of the fake notes in his possession.

All of these reports have been denied by Pakistan.

While there is no doubt that counterfeit notes are in circulation, independent confirmation of their origin is difficult to come by.

The recent hijacking of an Indian airlines flight by Islamic militants and the military coup in Pakistan last year, have plunged cross-border relations into even deeper than usual bitterness and recrimination.

Pakistan says the allegations about passing a fake 500 rupee note are part of a concerted effort by India to vilify Pakistan in the eyes of the world.

Whatever the truth of this matter, it can only harm regional relations and stability.