Lok Sabha Question No. 341 (UNSTARRED), answered on 2020-09-15
Subject: Circulation of Fake Currency Notes
Ministry: HOME AFFAIRS
Asked by: Ramya  Haridas

## GOVERNMENT OF INDIA MINISTRY OF HOME AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 341

TO BE ANSWERED ON THE 15 TH  SEPTEMBER, 2020/ BHADRAPADA 24, 1942 (SAKA)

CIRCULATION OF FAKE CURRENCY NOTES

341. MS. RAMYA HARIDAS:

Will the Minister of HOME AFFAIRS be pleased to state:

- (a) whether it is a fact that the circulation of fake currency notes has increased in the border areas in recent years;
- (b)  if  so,  the  value  of  counterfeit  Indian  currency  notes  seized  in denominations of Rs.2000, Rs.500 and Rs.200, State-wise;

(c) the steps being taken by the Government to counter the circulation of fake currency; and

(d) the assessment of impact of fake currency on Indian economy?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF HOME AFFAIRS (SHRI G. KISHAN REDDY)

(a) & (b): As per the data available with NCRB, the value of Fake Indian Currency Notes (FICN) seized in denominations of Rs.2000, Rs.500 and Rs.200 during the recent years, in the bordering states, is given in the

Annexure.

## LSUSQ No.341 for 15.09.2020

(c) : Intelligence and Security Agencies of Centre and State Governments  keep  a  close  watch  on  the  elements  involved  in  the circulation  of  fake  currency  notes  in  the  country  and  take  action  on any reported violation of law.

The  Government  has  taken  various  measures  to  check  the smuggling and circulation of FICN into the country, which inter-alia, include:- i) The  Unlawful  Activities  (Prevention)  Act,  1967  criminalises  the production  or  smuggling  or  circulation  of  High  Quality  Fake  Indian paper currency, coin or any other material as a 'terrorist act'.

ii) FICN  Coordination  Group  (FCORD)  formed  by  the  Ministry  of Home  Affairs  (MHA)  shares  intelligence/information  amongst  the different  security  agencies  of  the  States/Centre  to  counter  the problem of circulation of fake currency notes in the country.

iii) A  Terror  Funding  and  Fake  Currency  Cell  (TFFC)  has  also  been created  in  the  National  Investigation  Agency  (NIA)  to  investigate terror funding and fake currency cases.

iv)  A Memorandum of Understanding has been signed between India and  Bangladesh  to  prevent  and  counter  smuggling  &  circulation  of Fake Currency Notes.

v) Security  at  the  international  borders  has  been  strengthened  by using  new  surveillance  technology,  deploying  additional  manpower for round the clock surveillance, establishing observation posts along the  international  border,  erection  of  border  fencing  and  intensive patrolling.

vi) Standard Operating Procedure has been formulated for detection and investigation of FICN by Centre and State Police forces.  Further, capacity building of State Police Forces has been enhanced by way of training on FICN.

(d):  Production  or  smuggling  or  circulation  of  FICN  has  adverse effect on monetary stability of the country.

* * * * *

## ANNEXURE

## Lok Sabha USQ. No. 341 for 15.09.2020

Statement indicating the value of Counterfeit Indian Currency Notes of Rs.2000, Rs.500 and Rs.200 during the period from 01-01-2016 to 31-12-2019 in respect of bordering States

| State             |   Denomination of Rs.2000 |   Denomination of Rs.2000 |   Denomination of Rs.2000 |   Denomination of Rs.2000 | Denomination of Rs.2000   | Denomination of Rs.2000   |   Denomination of Rs.500 |   Denomination of Rs.500 |   Denomination of Rs.500 |   Denomination of Rs.500 | Denomination of Rs.500   | Denomination of Rs.200   |   Denomination of Rs.200 |   Denomination of Rs.200 |   Denomination of Rs.200 |   Denomination of Rs.200 | Denomination of Rs.200   | Denomination of Rs.200   |
|-------------------|---------------------------|---------------------------|---------------------------|---------------------------|---------------------------|---------------------------|--------------------------|--------------------------|--------------------------|--------------------------|--------------------------|--------------------------|--------------------------|--------------------------|--------------------------|--------------------------|--------------------------|--------------------------|
| State             |                      2016 |                      2017 |                      2018 |                      2019 | Total                     | Value                     |                     2016 |                     2017 |                     2018 |                     2019 | Total                    | Value                    |                     2016 |                     2017 |                     2018 |                     2019 | Total                    | Value                    |
| Arunachal Pradesh |                         0 |                         0 |                         0 |                         0 | 0                         | 0                         |                        0 |                        0 |                        0 |                        0 | 0                        | 0                        |                        0 |                        0 |                        0 |                        0 | 0                        | 0                        |
| Assam             |                       325 |                      4268 |                       839 |                       325 | 5757                      | 11514000                  |                      819 |                      622 |                      608 |                      955 | 3004                     | 1502000                  |                      336 |                        3 |                     1472 |                      396 | 2207                     | 441400                   |
| Bihar             |                       230 |                      1128 |                       418 |                       230 | 2006                      | 4012000                   |                      283 |                       29 |                      516 |                      283 | 1111                     | 555500                   |                       55 |                        0 |                      561 |                      138 | 754                      | 150800                   |
| Gujarat           |                      9230 |                     30658 |                      2722 |                     14494 | 57104                     | 114208000                 |                     4593 |                      104 |                     4622 |                     5558 | 14877                    | 7438500                  |                     1378 |                       70 |                      932 |                     1504 | 3884                     | 776800                   |
| Himachal Pradesh  |                         0 |                       194 |                       105 |                         0 | 299                       | 598000                    |                        0 |                        0 |                        0 |                        0 | 0                        | 0                        |                        0 |                        0 |                        5 |                        0 | 5                        | 1000                     |
| Jammu & Kashmir   |                        70 |                       229 |                       354 |                        70 | 723                       | 1446000                   |                      324 |                     1329 |                      274 |                      324 | 2251                     | 1125500                  |                      341 |                      270 |                      165 |                      341 | 1117                     | 223400                   |
| Manipur           |                         0 |                         2 |                         0 |                         0 | 2                         | 4000                      |                        0 |                        0 |                       62 |                        0 | 62                       | 31000                    |                        0 |                        0 |                      159 |                        0 | 159                      | 31800                    |
| Meghalaya         |                         0 |                         0 |                         0 |                         0 | 0                         | 0                         |                        0 |                        0 |                        0 |                        0 | 0                        | 0                        |                        0 |                        0 |                        0 |                        0 | 0                        | 0                        |
| Mizoram           |                      2664 |                      3188 |                      3494 |                      2664 | 12010                     | 24020000                  |                      913 |                     1465 |                      764 |                      913 | 4055                     | 2027500                  |                        0 |                        0 |                        0 |                        0 | 0                        | 0                        |
| Nagaland          |                         0 |                         0 |                         8 |                         0 | 8                         | 16000                     |                        0 |                        0 |                      147 |                        0 | 147                      | 73500                    |                        0 |                        0 |                        0 |                        0 | 0                        | 0                        |
| Punjab            |                      1352 |                      1662 |                       241 |                      1601 | 4856                      | 9712000                   |                     3983 |                      174 |                       99 |                     4410 | 8666                     | 4333000                  |                     1859 |                        0 |                      104 |                     2029 | 3992                     | 798400                   |
| Rajasthan         |                       429 |                       270 |                      1438 |                       429 | 2566                      | 5132000                   |                      822 |                       77 |                      105 |                      822 | 1826                     | 913000                   |                      397 |                        0 |                       39 |                      397 | 833                      | 166600                   |
| Sikkim            |                         0 |                         0 |                         0 |                         0 | 0                         | 0                         |                        0 |                        0 |                        0 |                        0 | 0                        | 0                        |                        0 |                        0 |                        0 |                        0 | 0                        | 0                        |
| Tripura           |                         1 |                         0 |                         3 |                         9 | 13                        | 26000                     |                        0 |                        0 |                        5 |                       16 | 21                       | 10500                    |                        0 |                        0 |                        0 |                        1 | 1                        | 200                      |
| Uttar Pradesh     |                      1935 |                     10315 |                      3253 |                      2683 | 18186                     | 36372000                  |                      839 |                     1606 |                     1918 |                     2056 | 6419                     | 3209500                  |                      254 |                      486 |                      389 |                      905 | 2034                     | 406800                   |
| Uttarakhand       |                         2 |                       115 |                         0 |                         2 | 119                       | 238000                    |                        2 |                        0 |                        0 |                        2 | 4                        | 2000                     |                       10 |                        6 |                        0 |                       10 | 26                       | 5200                     |
| West Bengal       |                     10147 |                     11123 |                     12129 |                     13625 | 47024                     | 94048000                  |                     3086 |                      261 |                      952 |                     4919 | 9218                     | 4609000                  |                      108 |                        0 |                      120 |                      738 | 966                      | 193200                   |
| Total             |                     28401 |                     65169 |                     27022 |                     38151 | 150673                    | 301346000                 |                    17680 |                     7684 |                    12090 |                    22277 | 51661                    | 25830500                 |                     6754 |                     2852 |                     5964 |                     8478 | 15978                    | 3195600                  |