Lok Sabha Question No. 102 (UNSTARRED), answered on 2017-12-15
Subject: Circulation of Fake Notes
Ministry: FINANCE
Asked by: SHIVAJI ADHALRAO PATIL, ANANDRAO  ADSUL, PRITAM GOPINATH MUNDE, ANTO  ANTONY

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 102 TO BE ANSWERED ON 15 th  DECEMBER, 2017/24 TH  AGRAYAHANA SAKA, 1939 Circulation of Fake Notes

## 102. SHRI ADHALRAO PATIL SHIVAJIRAO:

SHRI ANANDRAO ADSUL:

DR. PRITAM GOPINATH MUNDE:

SHRI ANTO ANTONY:

## QUESTION

## Will the Minister of FINANCE be pleased to state:

- (a) whether the Union  Government  has ascertained circulation of fake notes especially since demonetisation;
- (b) if so, the details of percentage of fake notes in circulation along with the value of fake notes detected after demonetisation till date;
- (c)  whether there is a decline of about 2 per cent of GDP due to demonetisation and if so, the details thereof; and
- (d) the steps taken by the Government in this regard?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI P. RADHAKRISHNAN)

(a) & (b): The data available from the National Crime Records Bureau indicates that the number of Fake Indian Currency notes (FICNs) as seized by State/UT Police for the period from 9.11.2016 to 30.11.2017 is 3,21,283 pcs having a value of Rs. 18,70,39,071. No high quality counterfeit new currency notes have been seized by any agency so far.

- (c):  The  overall  economic growth of the Indian economy is dependent on many factors that, inter-alia, include the rate of capital formation and savings, utilization of technology, availability of infrastructure, efficiency of resource allocation, quality of institutions, governance and the policy framework in place, money  supply  and  degree  of financial development.  It is difficult to pin-point the impact of demonetization on the economy via its impact on the aforesaid factors.

Economic Survey 2016-17, presented to the Parliament in January 2017, mentioned that demonetisation had temporarily affected real GDP and part of economic activity. The Real GDP Growth has shown a revival  in  2017-18:  Q2  registering  a  growth rate  of 6.3  per cent  from  a  growth  rate  of  5.7  per  cent  in 2017-18: Q1.

- (d): The Government of India has taken measures to boost real GDP growth. Some of the key initiatives taken in this regard are:
- i. Government's  push  to  infrastructure  development  by  giving  infrastructure  status  to  affordable housing, higher allocation to highway construction and focus on coastal connectivity.
- ii. Implementation of Goods and Service Tax (GST) to integrate the country in to a single market.
- iii. Enactment of Insolvency and Bankruptcy Code, 2016 to consolidate existing framework into a single law.
- iv. Recapitalisation of public sector banks (PSBs) with ₹ 2.11 trillion to address balance sheet problems.
- v. Universal  Electrification  program  being  taken  to  provide  last  mile  connectivity  and  electricity connections to all remaining un-electrified households.
- vi. Increased  public  expenditure  on  infrastructure  with  special  thrust  on  key  development  sectors including rural roads, railways, highways and digital infrastructure.

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