Value of fake notes in banking system recorded over 80% decline from 2016-17 to 2021-22: Union Minister

Source: The post is based on the article “Value of fake notes in banking system recorded over 80% decline from 2016-17 to 2021-22: Union Minister” published in The Hindu on 8th August 2022.

What is the News?

The Union Finance Minister has informed the Lok Sabha about the Counterfeit Currency in the Banking System.

What is the trend of Counterfeit Currency in the Banking System?

The value of counterfeit currency in the banking system reduced from ₹43.47 crore in 2016-17 to about ₹8.26 crore in 2021-22, amounting to a sharp decline of more than 80%.

Reason: The decline came after the Government of India decided to cancel the legal tender status of ₹1,000 and ₹500 denomination currency notes in 2016. 

– Note: The decision of demonetisation had several objectives including curbing the circulation of Fake Indian Currency Notes(FICN).

What are the steps taken by the Government of India to tackle the counterfeit currency issue?

Firstly, Terror Funding and Fake Currency Cell in the National Investigation Agency (NIA) has been constituted to conduct a focused investigation of terror funding and fake currency cases. 

Secondly, the government has set up an FICN Coordination Group to share intelligence and information with the security agencies in the States and the Centre.

Thirdly, a Joint Task Force is functioning between India and Bangladesh for building trust and cooperation for the exchange of information and analysis of smugglers of FICN. 

Fourthly, the government conducts capacity-building programmes for various law enforcement agencies at the Centre/State level. Training programmes are held for the police officers of Nepal and Bangladesh to sensitise them about the smuggling/ counterfeiting of Indian currency.