Lok Sabha Question No. 3332 (UNSTARRED), answered on 2016-08-05
Subject: Fake Currency Notes
Ministry: FINANCE
Asked by: M. CHANDRAKASI

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO.3332

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

## FAKE CURRENCY NOTES

3332. SHRI M. CHANDRAKASI:

## QUESTION

Will the Minister of FINANCE be pleased to state:

- (a) the percentage of fake currency notes out of the total currency notes in circulation in the country, denomination-wise during the last three years;
- (b) the details regarding safety measures available for common man who unwittingly happen to possess fake currency notes due to transactions in the retail market against prosecution; and
- (c) whether the Government has any proposal to provide free fake-currency checking facilities by installing Currency Note Sorting machines in banks/ important public places, etc. and if so, the details thereof?

## ANSWER

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

- (a) As per available data on Notes In Circulation (NIC), from Reserve Bank of India (RBI) and  seized  and  recovered  fake  Indian  Currency  Notes  (FICN),  from  National  Crime Records Bureau (NCRB), denomination-wise percentage is as given in the following table
- (b) In terms of RBI's Master Circular dated July 20, 2016 on Detection and Impounding of counterfeit notes by banks, for cases of detection of counterfeit notes upto 4 pieces in a single transaction, only a consolidated report is sent by the bank to Police Authority along with suspect counterfeit notes at the end of the month. For cases of detection of counterfeit notes of 5 or more pieces in a single transaction, counterfeit notes should be forwarded by the bank to the local police for investigation by filing an FIR.
- (c) RBI has been advised to install Note-sorting machine at identified places to facilitate checking of FICN.

| Financial Year   | Percentage of FICN in number to NIC (approximate)   | Percentage of FICN in number to NIC (approximate)   | Percentage of FICN in number to NIC (approximate)   | Percentage of FICN in number to NIC (approximate)   | Percentage of FICN in number to NIC (approximate)   |
|------------------|-----------------------------------------------------|-----------------------------------------------------|-----------------------------------------------------|-----------------------------------------------------|-----------------------------------------------------|
| Financial Year   | Rs. 1000                                            | Rs. 500                                             | Rs. 100                                             | Rs. 50                                              | Others                                              |
| 2013             | 0.00383                                             | 0.00377                                             | 0.00126                                             | 0.00038                                             | 0.00006                                             |
| 2014             | 0.00312                                             | 0.00255                                             | 0.00126                                             | 0.00023                                             | 0.0007                                              |
| 2015             | 0.00281                                             | 0.00191                                             | 0.00138                                             | 0.0002                                              | 0.000007                                            |

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