Lok Sabha Question No. 3648 (UNSTARRED), answered on 2025-08-11
Subject: Counterfeit Currency Notes
Ministry: FINANCE
Asked by: Shri Sasikanth Senthil

## DEPARTMENT OF ECONOMIC AFFAIRS

## GOVERNMENT OF INDIA MINISTRY OF FINANCE LOK SABHA

UNSTARRED QUESTION NO. 3648

TO BE ANSWERED ON MONDAY, 11 TH  AUGUST 2025 / SRAVANA 20, 1947 (SAKA)

## Counterfeit Currency Notes

## 3648:   Shri Sasikanth Senthil:

Will the Minister of Finance be pleased to state:

- (a)   the number of counterfeit currency notes in the denominations of Rs. 100, 200, 500 and 2000 have been detected during the last five years, year-wise
- (b)    whether  the  Reserve  Bank  of  India  (RBI)  has  recommended  new  security  features  or advanced  printing  technologies  to  curb  counterfeiting  and  if  so,  the  details  thereof including any pilot measures currently in implementation;
- (c)  whether the Government proposes to conduct a forensic or intelligence-based study to trace the origin and circulation pattern of counterfeit notes and if so, the details thereof
- (d)  whether a formal coordination mechanism exists between the Government, RBI and the Intelligence Bureau for real-time detection and prevention of counterfeit currency; and
- (e)  if so, the details thereof including joint operations, intelligence sharing protocols or task forces constituted for this purpose?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY FOR FINANCE (SHRI PANKAJ CHAUDHARY)

(a) As per Reserve Bank of India , Denomination-wise Counterfeit Notes detected / reported in the Banking System (April-March) during the last five years is as under:

| Denomination (₹)      | 2020-21   | 2021-22   | 2022-23   | 2023-24            | 2024-25            |
|-----------------------|-----------|-----------|-----------|--------------------|--------------------|
|                       |           |           |           | (Number of pieces) | (Number of pieces) |
| 100                   | 1,10,736  | 92,237    | 78,699    | 66,310             | 51,069             |
| 200                   | 24,245    | 27,074    | 27,258    | 28,672             | 32,660             |
| 500 (MG Series)       | 9         | 14        | 6         | 11                 | 5                  |
| 500 [MG (New) Series] | 39,453    | 79,669    | 91,110    | 85,711             | 1,17,722           |
| 1,000                 | 2         | 11        | 482       | 1                  | 2                  |
| 2,000                 | 8,798     | 13,604    | 9,806     | 26,035             | 3,508              |
| Total                 | 2,08,625  | 2,30,971  | 2,25,769  | 2,22,639           | 2,17,396           |

(b)  to  (e):  Government  of  India,  in  consultation  with  Reserve  Bank  of  India  reviews  the effectiveness of security features of banknotes from time to time and undertakes measures to introduce new security features in accordance with section 25 of the Reserve Bank of India Act, 1934.   Incorporating new security features/new designs in the banknotes to stay ahead of the counterfeiters is a continuous process.

The following coordination mechanism between the Reserve Bank of India, Ministry of Home Affairs, and Intelligence Bureau to detect and prevent the circulation of counterfeit currency: -

- i. Coordination  through  meetings  of  FCORD  -  Coordination  and  information-sharing among  various  enforcement  and  intelligence  agencies,  including  RBI,  is  facilitated through periodic meetings of the Fake Indian Currency Notes (FICN) Coordination Group (FCORD) -set  up  under  Intelligence  Bureau  (IB)  by  the  Ministry  of  Home Affairs (MHA) -convened by MHA. These meetings serve as a platform for interagency  coordination  to  review  emerging  trends,  assess  threats,  and  strengthen  the institutional response to the menace of counterfeit currency.
- ii. Data Sharing with CEIB -The Reserve Bank of India shares quarterly counterfeit note data detected in the banking channel, along with its State-wise analysis for quarters ending March, June, September, and December, with the Central Economic Intelligence Bureau (CEIB) for their perusal and further necessary action.
- iii. Reporting to FIU-IND and NCRB - As per the extant instructions under Rule 8(1) of the Prevention of Money Laundering (Maintenance of Records) Amendment Rules, 2013, banks are mandated to report information on cash transactions where counterfeit notes are detected to the Financial Intelligence Unit -India (FIU-IND) by the 15th day of the succeeding month. This is done through the FINnet portal. In addition, data on counterfeit note detection is also uploaded by banks on the web-enabled platform of the National Crime Records Bureau (NCRB), New Delhi.
- iv. Submission to MHA under UAPA - Further, as per Rule 8 of the Investigation of HighQuality Counterfeit Indian Currency Offences Rules, 2013, framed by the Ministry of Home  Affairs  (MHA),  Government  of  India,  the  printing  presses  are  required  to annually conduct a review of the counterfeit currency notes analysed by them during the period and submit a report to the Reserve Bank of India. Based on this, RBI submits its recommendation to the Central Government regarding revisions, if any, to the Third Schedule of the Unlawful Activities (Prevention) Act, 1967 (UAPA)