Lok Sabha Question No. 3285 (UNSTARRED), answered on 2016-08-05
Subject: Security Features of Currency Notes
Ministry: FINANCE
Asked by: P. C. MOHAN

## LOK SABHA

## UNSTARRED QUESTION NO.3285

## TO BE ANSWERED ON 5 TH     AUGUST 2016/14 TH   SHRAVANA SAKA, 1938

## SECURITY FEATURES OF CURRENCY NOTES

3285. SHRI P.C. MOHAN:

## QUESTION

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government is aware of the increasing circulation of fake currency notes reported from various parts of the country and if so, the details thereof;
- (b) whether  the  Committee  headed  by  Shri  Shilabhadra  Banerjee  to  review  the security features for currency notes has submitted its report and if so, the details thereof along with the response of the Government thereon;
- (c) whether there is a proposal to set up a directorate of currency and if so, the details thereof; and
- (d) the other steps taken by the Government to check circulation of fake currency?

## ANSWER MINISTER OF STATE IN THE MINISTRY FOR FINANCE (SHRI ARJUN RAM MEGHWAL)

- (a) A study on Fake Indian Currency Notes (FICN) issues, including estimation of FICN in circulation, has been undertaken by Statistical Institute (ISI), Kolkata under the overall  supervision  of  National  Investigation Agency  (NIA).  As  per the  study,  the face value of FICN in circulation was found to be about Rs. 400 crores. It was found the value remained constant for the last 4 years. As per the data from National Crime Records Bureau, number of seized and recovered FICN is as follow:
- (b) The Committee headed by Shri Shilabhadra Banerjee has  submitted  its  report. The design and security features of banknotes are decided by the Government of India from time to time, in consultation with Reserve bank of India (RBI).
- (c) A post of Director General in the rank of Additional Secretary in the Directorate of Currency has been created.
- (d) To  check  the  menace  of  counterfeiting  of  banknotes,  The  Ministry  of  Finance, Ministry of Home Affairs, Reserve Bank of India, Security and Intelligence Agencies of the Centre and States are working in tandem to thwart the illegal activities related to Fake Indian Currency Note (FICN).  An FICN Coordination Group (FCORD) has been formed in  the  Ministry  of  Home  Affairs  to  share  the  intelligence/information  amongst  different security  agencies  of  States/Centre  to  counter  the  menace  of  agencies  to  effect  more seizures.  The issue has also been raised in international multilateral fora constantly.  RBI has also initiated several measures for generating public awareness, conducting training programs for employees/officers of banks and streamlining the process of reporting and detection of counterfeit notes.

| Financial Year   | Number of Notes seized and recovered   | Number of Notes seized and recovered   | Number of Notes seized and recovered   | Number of Notes seized and recovered   | Number of Notes seized and recovered   |
|------------------|----------------------------------------|----------------------------------------|----------------------------------------|----------------------------------------|----------------------------------------|
| Financial Year   | Rs. 1000                               | Rs. 500                                | Rs. 100                                | Rs. 50                                 | Others                                 |
| 2013             | 194767                                 | 429757                                 | 185865                                 | 13043                                  | 23535                                  |
| 2014             | 175488                                 | 334681                                 | 188973                                 | 8067                                   | 3340                                   |
| 2015             | 178022                                 | 299524                                 | 217189                                 | 7702                                   | 3134                                   |

Further,  in  order  to  stay  ahead  of  the  counterfeiters,  Government  has  recently introduced revised numbering pattern in all denominations of banknotes.  RBI has issued Press Release in this regard on June 25, 2015.