More security features on notes soon

Govt steps aimed at countering proliferation of fake currency


You can count on it Reuters

A high-level committee headed by the home secretary is working on identifying the latest security features which will be incorporated into the currency notes to make counterfeiting difficult, highly placed sources in the Finance Ministry told Deccan Herald.

The committee, which has been constituted recently to monitor and draw a comprehensive strategy to curb circulation of fake notes, comprises top officials from the Central Bureau of Investigation (CBI) and the Intelligence Bureau.

The committee will seek suggestions from foreign forensic experts as well as international institutions on combating counterfeiting and in identifying the latest security features, sources said.

The last time additional security features were incorporated in the currency notes was in 2005.

There is a “strong” feeling within the government that another fresh round of security measures needs to be incorporated in the currency notes to “make counterfeiting very difficult,” sources said.  In the face of the alleged link between the producers of fake notes and terrorists, the government is now giving top priority to rooting out fake notes, sources said.

NCRB report

As per the report of the National Crime Records Bureau (NCRB), the total value of counterfeit currency seized by law enforcement agencies and recovered through banking channels during 2007 and 2008 stood at more than Rs 10.5 crore and Rs 21.45 crore respectively.

In the first three months of the current financial year, fake currency notes worth more than Rs 4.09 crore were seized.

The maximum number of fake notes are in the denomination of Rs 100 followed by Rs 500 and Rs 1,000.

In the current year, the maximum number of fake notes seized so far belonged to Rs 500 denomination followed by Rs 100 and Rs 1,000 denominations. The committee, while reviewing the steps taken by the government to curb circulation of fake currency notes, has suggested further stepping up of vigil by the BSF and Customs authorities to prevent the smuggling of fake notes. While the Centre has nominated the CBI as the nodal agency to monitor investigation of fake currency notes, the Reserve Bank of India has also strengthened the mechanism to detect fake notes by the banks.

To further tighten vigilance against circulation of fake notes, the Centre has advised states to set up committees at state levels. Some states have already set up high-level committees drawing top officials from the CID and state intelligence department, the sources said.

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