Lok Sabha Question No. 457 (STARRED), answered on 2023-04-03
Subject: Fake Currency
Ministry: FINANCE
Asked by: Badruddin Ajmal

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS LOK SABHA STARRED QUESTION NO.457 TO BE ANSWERED ON 03.04.2023

## Fake Currency

*457. SHRI M. BADRUDDIN AJMAL:

Will the Minister of FINANCE be pleased to state:

- (a) whether it is true that a large quantity of fake currency is in circulation in the markets of the country despite implementation of demonetization which causes difficulties to the citizens;
- (b) if so, the details thereof and the reasons therefor along with the preventive measures and the action taken by the Government to clean the market from fake currency;
- (c) the quantity of fake currencies seized after demonetization in the country, year-wise; and
- (d) the number of cases related to fake currency registered during the said period and action taken thereon?

## ANSWER

## FINANCE MINISTER

(SMT. NIRMALA SITHARAMAN)

- (a) to (d):

A Statement is laid on the table of the House.

## STATEMENT  REFFERED  TO  IN  REPLY  TO  LOK  SABHA  STARRED QUESTION  NO.  457  RAISED  BY  SHRI  M.  BADRUDDIN  AJMAL,  HON'BLE MEMBER OF PARLIAMENT TO BE ANSWERED ON 03.04.2023 REGARDING FAKE CURRENCY

## (a) No, Sir.

(b)  to  (d)  As  per  National  Crime  Records  Bureau  (NCRB)  data,  the  number  of  fake currency seized in year 2016 to 2021 are as follows:

| Year                        |   2016 |   2017 |   2018 |   2019 |   2020 |   2021 |
|-----------------------------|--------|--------|--------|--------|--------|--------|
| Number of pieces (in lakhs) |   2.82 |   3.56 |   2.57 |   2.87 |   8.35 |    3.1 |

As per NCRB data, number of cases related to fake currency registered during the period is as under:

| Year                   | 2016   |   2017 |   2018 |   2019 |   2020 |
|------------------------|--------|--------|--------|--------|--------|
| No. of FIRs registered | 1,172  |    978 |    914 |    835 |    385 |

Further, the  Directorate of Enforcement has taken up eight (08) cases for investigation under Prevention of Money Laundering Act, 2002 (PMLA) related to seizure of counterfeit currency  of  Rs.  84.32  crore  by  Law  Enforcement  Agencies.  Necessary  action  as  per provisions of PMLA has been taken.

In order to contain the circulation of Fake Indian Currency Notes (FICN), Government of India  had,  inter  alia,  enacted  the  Unlawful  Activities  (Prevention)  Act,  1967,  formed National Investigation Agency (NIA) which is the nodal agency for investigation of highquality  FICN  in  India,  constituted  an  FICN  Coordination  Group  (FCORD)  to  share intelligence/information among the security agencies of the States/Centre and constituted a  Terror  Funding  and  Fake  Currency  (TFFC)  Cell  in  the  NIA  to  conduct  focused investigation of terror funding and fake currency cases.

Further, a Joint Task Force is functioning between India and a neighbouring country for building trust and cooperation for exchange of information and analysis of smugglers of FICN. A Memorandum of Understanding (MoU) has been signed between India and the country to prevent and counter smuggling and circulation of fake currency notes.

Government also  conducts  capacity  building  programmes  for  various  law  enforcement agencies  at  Centre/State  level.  In  addition,  training  programmes  are  conducted  for  the police officials of a few neighbouring countries to sensitise them about smuggling/counterfeiting of Indian currency.

In  2015, RBI had issued bank notes in all denominations in 'Mahatma Gandhi Series2005'  with  a  new  numbering  pattern  and  other  visible  security  features.  With  visible security features, the general public can easily distinguish a counterfeit bank note from a genuine one. Details of security features of these notes are displayed on the RBI website for the general public.

RBI has issued various instructions to banks on measures to safeguard against counterfeit bank notes. Bank notes in denominations of  ₹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. A directive has been issued by RBI under the section 35A of the Banking Regulation Act, 1949 to all scheduled banks to curb circulation of counterfeit bank notes.

RBI regularly conducts training programmes on detection of counterfeit bank notes for employees/officers  of  banks  and  other  organisations  handling  large  amount  of  cash. Regional Offices of RBI participate in various awareness programmes where the members of public are made aware of the features of Indian banknotes and ways to identify genuine Indian banknotes. Posters, leaflets, etc. are also distributed in such awareness programmes.

RBI has issued a Master Circular on detection and reporting of counterfeit  bank notes, updated  as  on  April  01,  2022  which  is  available  in  the  public  domain  for  wider dissemination of systems and procedure to be followed on detection of counterfeit bank notes.

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