Measures To curb Fake Currency

The steps taken by the Government to curb circulation of Fake Indian Currency Notes (FICN) in the country include 

1. Stepping up of vigilance by the Border Security Force and Custom authorities to prevent smuggling of fake notes
2. Dissemination of information on security features through print and electronic media and formation of Forged Note Vigilance Cells in all the Head Offices of the banks.
3. Additional security features have also been incorporated in the bank notes in 2005 to make counterfeiting very difficult.
4. To strengthen the security of bank notes further, incorporation of latest security features is underway.
5. A high Level Committee headed by the Union Home Secretary comprising officials from central agencies and other senior police officials has been constituted to monitor and draw a comprehensive strategy to combat FICN. Similar bodies have also been set up in the States.
6. In addition, Government of India have nominated the Central Bureau of Investigation as the Nodal Agency to monitor investigation of fake currency note cases. The RBI has also strengthened the mechanism for detection of counterfeit notes by the Banks

Source: PIB

Adverse Impact of IFCN on Indian Economy

The smuggling of a large amount of IFCN is simply economic terrorism. The funds generated so are additionally used to finance the terrorist activities in India. According to an unconfirmed report, ISI has an annual budget of Rs 1800 crore per year on organizing terrorist activities in India. It generates most of this requirement itself by printing and circulating fake currency, and smuggling of drugs to and through India for European and Amercian desitnations.

Posted in: Basics