(a) The total value of old currency notes replaced by new currency notes including their colour, dimensions and technical specifications as on date in the country ;
(b) The anticipated short term and long term effects of this step on the economy of the country; and
(c) The effective steps taken by the Government to eliminate fake currency in the country?
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI Pon. RADHAKRISHNAN)
(a) The total value of banknotes destroyed in FY 2016-17 is 3.61 lakh crore and in 2017-18 is 16.88 lakh crore.
Details of currency supplied in the last 2 years are as follows:
Year (number in million pcs.) Value
in crore
Rs.10 Rs.20 Rs.50 Rs.100 Rs.200 Rs.500 (old design) Rs.500 (new design) Rs.1000 Rs.2000 Total
2016-
17 2,785 4,118 2,700 5,738 0 2,013 7,260 925 3,504 29,043 13,38,851
2017-
18 4,313 2,051 2,793 3,170 2,832 0 9,693 0 151 25,003 6,25,570
For colour, dimension and technical specification of new bank note, the website of RBI http://rbi.org.in/scripts/ic_currency.aspx in Press Release Section may please be referred.
(b) The Government of India decided to cancel the Legal Tender Status of Rs.1000 and Rs.500 denomination currency notes on 8th November 2016 with several objectives: (i) flushing out black money, (ii) eliminate Fake Indian Currency Notes (FICN), (iii) to strike at the root of financing of terrorism and left wing extremism, (iv) to convert non-formal economy into a formal economy to expand tax base and employment and (v) to give a big boost to digitalization of payments to make India a less cash economy.
(c) The Government and Reserve Bank of India (RBI) have taken various measures to check the smuggling and circulation of Fake Indian Currency Notes (FICN) into the country, which inter-alia, include:-
i. Intelligence and Security Agencies of Centre and States keep a close watch on the elements involved in the circulation of fake currency in the country and take action on any reported violation of law.
ii. FICN Coordination Group (FCORD) formed by the MHA shares intelligence/information among the different security agencies of the States/Centre to counter the problem of circulation of fake currency notes in the country.
iii. A Memorandum of Understanding (MoU) has been signed between India and Bangladesh to prevent and counter smuggling & circulation of Fake Currency Notes.
iv. Security at the international borders has been strengthened.
v. Incorporating new security features/ new designs in the banknotes during the year 2005-2006.
vi. Banknotes have been issued, in all denominations in Mahatma Gandhi Series -2005, with a new numbering pattern, which is difficult to counterfeit.
vii. Instructions have been issued to banks that banknotes in denominations of Rs. 100/- and above should be re-issued by banks over their counters or through ATMs only if these banknotes are duly checked for authenticity/genuineness and fitness by machines.
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