(a) whether transactions in fake Indian currency notes showed a whopping 250 per cent
growth during the last fiscal year as compared to 2008-09 with such transactions mostly
being detected in private sector banks;
(b) if so, the details thereof;
(c) whether Financial Intelligence Unit (FIU) has detected the role of private banks in the
circulation of fake Indian currency and if so, the details thereof; and
(d) the measures taken to check smuggling of fake Indian currency into the country ?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI NAMO NARAIN MEENA)
(a)&(b): No, Sir.
(c): FIU has no information about any role of Private Banks in the circulation of fake
Indian Currency Notes.
(d): The steps taken by the Government to curb circulation of FICN in the country include
stepping up of vigilance by the Border Security Force and Custom authorities to prevent
smuggling of fake notes; dissemination of information on security features through print
and electronic media and formation of Forged Note Vigilance Cells in all the Head Offices
of the banks. Additional security features have also been incorporated in the bank notes
in 2005 to make counterfeiting very difficult. To strengthen the security of bank notes
further, incorporation of latest security features is underway. A High Level Committee
headed by the Union Home Secretary comprising officials from central agencies and other
senior police officials has been constituted to monitor and draw a comprehensive strategy
to combat FICN. Similar bodies have also been set up in the States. In addition, Government
of India have nominated the Central Bureau of Investigation as the Nodal Agency to monitor
investigation of fake currency note cases.The RBI has also strengthened the mechanism for
detection of counterfeit notes by the Banks.