Counterfeit Currency in India


By

B. Sathish Kumar
Faculty, MBA
VLB Janakiammal College of Engineering & Technology
Coimbatore-641 042
 


Counterfeit or fake currency notes is one of threat faced by our economy. Various measures are taken serious by Government of India to reduce it. The extent of fake currency detected during 2004-05 are listed in the below table:

Denomination

2003 - 04

2004 - 05

No. of Pieces

Value (in Rs.)

No. of Pieces

Value (in Rs.)

Rs. 1000

759

759000

248

248000

Rs. 500

14,400

72,00,000

17,783

88,91,500

Rs. 100

1,61,797

1,61,79,700

1,82,361

1,82,36,100

Rs. 50

4,737

2,36,850

4741

237050

Rs. 20

156

3,120

56

1,120

Rs. 10

79

790

77

770

Total

181928

24379460

205266

27612540


The value of counterfeit currency detected during 2004 05 is marginally less during 2003 04.

Various steps have been taken by the central bank to abolish counterfeit currency apart from legal action.

RBI has advised the banks to install currency sorting machines which can detect counterfeit currency in currency chest.

RBI's regional office publishes the security features of currency in local language to create awareness in the public. It also appears in the RBI website.

RBI also organizes training programme to detect fake currency to bank officials, Government Department, police, paramilitary forces, etc.

Security features of currency notes are also upgraded from time to time. This makes counterfeit currency very difficult. The changes in security features recommended by the High Level committee appointed by Government of India include the following:

    * Paper- 90 GSM(+3) / 110 microns (+5)

    * Security threads - Machine readable windowed dematerialized clear text magnetic security thread with inscription "bharat" (in Hindi) colour of thread will shift from green to blue.

    * Electrolyte water Mark

    * Omron antiphotocopying feature

    * Year of printing

    * Optically variable ink

    * See through effect

    * Latent image

    * Intaglio printing

    * Optical fibers.

A broad level Strategic Planning & Technology Implementation Committee has been set up to conduct research and development in security settings.

We may believe that the above means make take India to a country of zero counterfeit currency and accelerate the growth of our economy.
 


B. Sathish Kumar
Faculty, MBA
VLB Janakiammal College of Engineering & Technology
Coimbatore-641 042
 

Source: E-mail August 7, 2006

     

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