Lok Sabha Question No. 2868 (UNSTARRED), answered on 2018-12-28
Subject: Value of Old Currency Notes
Ministry: FINANCE
Asked by: LALLU SINGH, REKHA ARUN VERMA

## GOVERNMENT OF INDIA MINISTRY  OF FINANCE DEPARTMENT  OF ECONOMIC AFFAIRS LOK SABHA UNSTARRED  QUESTION NO. 2868

TO BE ANSWERED ON 28th DECEMbEr,  2018 I TTh PAUSHA,  SAKA,  1 940.

## VALUE OF OLD CURRENCY NOTES

## QUESTION

2868. SHRI LALLU SINGH;  SHRIMATI REKHAVERMA  :

Will the Minister  of FINANCE be pleased  to state :

- (a) The total value of old currency  notes replaced  by new currency notes including their colour,  dimensions and technical specifications as on date in the country ;
- (b) The anticipated short term and long term effects of this step on the economy of the country; and
- (c) The effective steps taken by the Government  to eliminate  fake currency in the country?

## ANSWER

MINISTER  OF STATE IN THE MINISTRY  OF FINANCE (SHRI Pon. RADHAKRISHNAN),

- (a) The total value of banknotes destroyed  in FY 2016-17  is Rs. 3.61 lakh crore and in 2017-18 is Rs.16.88  lakh crore.

Details  of currency  supplied  in the last 2 years are as follows:

| Year      | (number in million pcs.)   | (number in million pcs.)   | (number in million pcs.)   | (number in million pcs.)   | (number in million pcs.)   | (number in million pcs.)   | (number in million pcs.)   | (number in million pcs.)   | (number in million pcs.)   | (number in million pcs.)   | Value     |
|-----------|----------------------------|----------------------------|----------------------------|----------------------------|----------------------------|----------------------------|----------------------------|----------------------------|----------------------------|----------------------------|-----------|
|           | Rs.10                      | Rs.20                      | Rs.50                      | Rs.100 0                   | Rs.20                      | Rs.500 (old design)        | Rs.500 (new design)        | Rs.1000                    | Rs.200 0                   | Total                      | in crore  |
| 20't6- 17 | 2,785                      | 4,118                      | 2,700                      | 5,738                      | 0                          | 2,O13                      | 7,260                      | 925                        | 3,504                      | 29,O43                     | 13,38,851 |
| 2017- 18  | 4,313                      | 2,051                      | 2,793                      | 3,170                      | 2,832                      | 0                          | 9,693                      | 0                          | 151                        | 25,003                     | 6,25,570  |

For colour, dimension and technical specification of new bank note, the website  of RBI http://rbi.org.  in/scripts/ic\_currency.aspx  in Press Release  Section may  please be referred.

- (b) The Government  of lndia decided  to cancel the Legal Tender Status of Rs.fOiO and Rs.500 denomination currency  notes on 8th November 2016 with several objectives:  (i) flushing  out black money, (ii) eliminate  Fake lndian Currency  Notes (FICN), (iii)  to strike  at the root of financing of terrorism and left wing extremism, (iv) to convert non-formal  economy into a formal economy  to expand tax base and employment and (v) to give a big boost to digitalization of payments  to make lndia a less cash economy.
- (c) The Government and Reserve  Bank of lndia (RBl) have taken various measures to check the smuggling  and circulation of Fake lndian Currency Notes (FICN) into the country, which inter-alia,  include:-
- i.  lntelligence  and Security Agencies of Centre and States keep a close watch on the elements  involved in the circulation of fake currency in the country and take action on any reported violation of law.
- ii. FICN Coordination  Group (FCORD)  formed by the MHA shares intelligencefinformation among the different security agencies  of the States/Centre to counter the problem of circulation of fake currency notes in the country.
- iii. A Memorandum  of Understanding  (MoU) has been signed between lndia and Bangladesh  to prevent  and counter smuggling  & circulation of Fake Currency Notes.
- iv. Security at the international  borders has been strengthened.
- v. lncorporating  new security features/  new designs in the banknotes  during the year 2005-2006.
- vi. Banknotes have been issued, in all denominations in Mahatma Gandhi Series -2005, with a new numbering  pattern,  which is difiicult to counterfeit.
- vii. lnstructions have been issued to banks that banknotes in denominations of Rs. 100/- and above should be re-issued by banks over their counters or through ATMs only if  these banknotes are duly checked for authenticity/genuineness and fitness by machines.