Lok Sabha Question No. 2144 (UNSTARRED), answered on 2015-12-11
Subject: Fake Currency
Ministry: FINANCE
Asked by: MAJ. GEN. (RETD) BHUWAN CHANDRA KHANDURI AVSM

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

## LOK  SABHA UNSTARRED QUESTION NO.2144 TO BE ANSWERED ON 11 TH  DECEMBER,  2015/20 TH  AGRAHAYANA, SAKA,1937 FAKE CURRENCY

## 2144. MAJ GEN B.C. KHANDURI AVSM(RETD) :

## QUESTION

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

- (a) whether  the  Reserve  Bank  of  India(RBI)  regularly  monitors  the  flow  of  fake currency in the country, if so, the details thereof;
- (b) whether a committee has been constituted for this purpose, if so, the details thereof along with the fake currency seized by RBI during the last three years and the current year;
- (c) whether the Government propose to introduce new kind of currency impossible for anyone to copy; and
- (d) if so, the details thereof and other steps likely to be taken by the Government to check the circulation of fake currency in the country?

## ANSWER

## MINISTER OF STATE FOR FINANCE

## (SHRI JAYANT SINHA)

(a) & (b): Reserve Bank of India(RBI) regularly monitors detection of fake currency in the banking  channel.    At  the  instance  of  RBI,  the  State  Governments  have  constituted State/District Level Committees, under the chairmanship of the Director General of Police of the State/ Collector of the district respectively, to deal exclusively with the issues relating to counterfeit  bank  notes  viz.,  sharing  of  information  on  seizures/detection;  lodging  of  FIR; reviewing measures to curb circulation of forged notes; and tackling / focusing on both, the cause and the effect, of the menace. Further, 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  circulation  of fake currency notes in the country.

The details of counterfeit notes detected in the banking system during the last three years and the current year are as under:

(In pieces)

| Year                         |   Detected by RBI |   Detected at Banks |   Total |
|------------------------------|-------------------|---------------------|---------|
| 2012-13                      |             29200 |              469052 |  498252 |
| 2013-14                      |             19827 |              468446 |  488273 |
| 2014-15                      |             26128 |              568318 |  594446 |
| 2015-16 (April-August, 2015) |             14307 |              250309 |  264616 |

(c) & (d): Incorporating new security features/ designs in the banknotes to stay ahead of the counterfeiters  is  an  ongoing  process.  In  order  to  stay  ahead  of  the  counterfeiters, Government  has  recently  introduced  revised  numbering  pattern  in  all  denominations  of banknotes. RBI has issued a Press Release on 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.

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