Lok Sabha Question No. 3325 (UNSTARRED), answered on 2015-12-18
Subject: Economic Impact of Fake Currency
Ministry: FINANCE
Asked by: SONA RAM CHOUDHARY, ADVOCATE NARENDRA KESHAV SAWAIKAR, P. C. MOHAN, VISHNU DAYAL RAM

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

## LOK SABHA

## UNSTARRED QUESTION NO.3325 TO BE ANSWERED ON 18 TH DECEMBER, 2015/27 TH AGRAHAYANA, SAKA, 1937 ECONOMIC IMPACT OF FAKE CURRENCY

3325. COL. SONARAM CHOUDHARY:

ADV. NARENDRA KESHAV SAWAIKAR:

SHRI P.C. MOHAN:

## QUESTION

SHRI VISHNU DAYAL RAM:

## Will the Minister of FINANCE be pleased to state:

- (a) whether  the  circulation  of  forged  currency  notes  particularly  through  banking channel has shown an upward trend and if so, the details of the seizure made by the Government/Reserve Bank of India (RBI) thereof during the last three years and the current year;
- (c) whether a Committee headed by Shri Shiabhadra Banerjee to review the security features for currency notes has submitted its report and if so, the details thereof; and
- (b) whether the steps taken by the Government to curb circulation of fake currency notes have proved to be inadequate, if so, the extent to which unabled circulation of fake currency has impacted the company;
- (d) the action taken by the Government to tackle the fake currency menace including setting up of a directorate of currency?

## ANSWER

## MINISTER OF STATE FOR FINANCE

## (SHRI JAYANT SINHA)

(a)  &  (b)  : Recovery  and  seizure  of  Fake  Indian  Currency Notes  (FICN)  reported  by Reserve Bank of India (RBI) and National Crime Records Bureau (NCRB) do indicate that counterfeit/fake currency notes are being circulated in the country. As per available data, FICN detected through banking channel and seized in the country during the last three years and the current year is as follows:

|   Year | Number of FICN detected through banking channel (In pcs.)   | Number of Notes Seized (In pcs.)   |
|--------|-------------------------------------------------------------|------------------------------------|
|   2012 | 5,00,024                                                    | 5,92,016                           |
|   2013 | 4,81,670                                                    | 3,65,296                           |

| 2014                  | 5,72,913   | 2,28,615   |
|-----------------------|------------|------------|
| 2015 (Jan-Sept, 2015) | 4,71,307   | 1,86,572   |

(c) : The Committee to review procedures for the acquisition of security sensitive items required for currency and other security products and their indigenization, headed by Shri Shilabhadra  Banerjee,  has  submitted  its  report  in  March  2010.    The  Committee recommended creation of Directorate of Currency for review and acquisition of security features; review of procurement manual of Security Printing and Minting Corporation of India Limited (SPMCIL)/ Bharatiya Reserve Bank Note Mudran Private Limited(BRBNMPL);  indigenization  of  banknote  paper  and  security  features;  single agency at the national level to co-ordinate the actions  of intelligence, law enforcement and investigating agencies engaged in the task of countering the menace of FICN; and launching a sustained and  wide spread multimedia campaign, for educating the public by the Reserve Bank of India (RBI).

(d): 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.

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.

Government in consultation with RBI, has also initiated the process of procurement of upgraded/new security features for a new series of banknotes.  RBI has issued a PQB for supply of Security Features for Indian banknotes on June 19, 2015.

A  post  of  Director General in  the  rank  of  Additional  Secretary  in  the Directorate  of Currency has been created.

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