The international currency rackets of the Dubai-based gangs have shifted their operations from western India to South India and moved “transshipment points” to Sri Lanka and Malaysia.

Alarmed by “the deep penetration” of international counterfeit gangs, the central security, economic intelligence and enforcement agencies have recommended “indigenisation” of  the paper on which the currency notes are printed as well as the printing ink and machinery. Most of the paper used for printing currency is currently being imported and can be procured by state-sponsored counterfeiters.

The recommendation for “indigenisation” was made here after exhaustive deliberations which CBI Director Vijay Shanker had with 22 nodal officers of various Central and state security and enforcement agencies as also those from the RBI. The annual counterfeit  seizures as on Saturday are estimated to be at about Rs 10 crore.

Top security and intelligence officials have also asked RBI to increase the security features of Indian currency notes from time to time “on the pattern of the US dollar which is also a much counter-feited currency in the world.”

The detection of fake currency spread is turning difficult with “constant improvement in the quality of fake currency notes and that too in higher denominations”. This apart, increased enforcement efforts in one geographical area against fake currency has resulted in shifting of international gangs into another area, according to enforcement officials.

Security and intelligence agencies have pointed out that besides profit, the other motive behind the crime of counterfeiting, was to “destabilize Indian economy” and “cause panic”. Given the external angle to the counterfeit operations a recommendation was made for a complete “indigenisation” of currency printing. With the South increasingly coming “in the loop” of  transnational and inter-state counterfeit racket, a proper coordination is being sought between the various southern states and Central agencies in sharing of intelligence and in the investigation of fake currency nexus.

It is understood that Union finance ministry has set up a committee comprising representatives from the Department of Economic Affairs, Directorate of Enforcement, National Security Council, Currency Note Press, Nasik, CBI, Ministry of Home Affairs and the Intelligence Bureau for curbing counterfeiting.