Question : PANEL TO CHECK FAKE CURRENCY

(a) whether the Reserve Bank of India has set up a high level `Technical Committee` to check fake currency in the country;

(b) if so, the details thereof;

(c) the time by which the report is likely to be submitted by the Committee;

(d) the details of fake currency seized by RBI during the last one year;

(e) whether the Government propose to introduce new kind of currency which is impossible for anyone to copy it;


(f) if so, the details thereof; and
(g) the other steps likely to be taken by the Government to check the circulation of fake currency in the country?

Minister of State in the Ministry of Finance (SHRI BALASAHEB VIKHE PATIL)

(a)&(b): A High Level Committee has been constituted with representation from the Department of Economic Affairs, Reserve Bank of India, Ministry of Home Affairs/National Security Council Secretariat(NSCS) to go into the entire gamut of issues pertaining to the security dimension of the country.

(c): The Committee is likely to submit its Report by July, 2000.

(d): The fake currency notes detected at RBI offices during the calendar year 1999 are 44,467 pieces valued at Rs.118.13 lakhs.

(e)&(f): Higher denomination notes with additional security features, will be issued shortly.

(g): The following additional steps have been taken to check circulation of fake currency in the country:-

i) Currency and Coinage Division has also set up a six-member Fact Finding Committee comprising experts on note-printing/currency paper, etc., for examining the fake notes seized in the past in order to enable the Government to take remedial action vis-a-vis printing and security features.

ii) RBI has been advised to go in for a publicity campaign about security features incorporated in the genuine notes so that the members of the public may distinguish between genuine and fake notes.

Accordingly, the RBI has taken the following steps:-

a) The Security features of Rs.500 deno. notes have been widely published in the print media to help the people to detect fake notes.

b) A film on security features of Rs.500 deno. notes produced in English, Hindi and other regional languages is being telecast on Doordarshan.

c) For the benefit of the public, a booklet has been brought out which inter-alia, describes the features of genuine notes. This booklet has been placed on the RBI`s Website besides being available to the public for sale at RBI`s issue offices.

d) As counterfeiting of 500 rupee note has been noticed predominantly in the 1987 series, the RBI has issued instructions to its offices not to reissue these notes but to return them to RBI.

e) All public sector banks and RBI offices have been instructed to provide Ultra Violet lamps at their branches to enable them to check the genuineness of the notes.