Executive Summary:
This document presents the Minister of Finance's response to questions regarding counterfeit currency notes in India. It details the number of counterfeit notes detected over the past five years, the measures taken by the Reserve Bank of India (RBI) and the government to curb counterfeiting, and the coordination mechanisms in place between various agencies for detection and prevention. The data covers the period from 2020-21 to 2024-25.
Key Points / Main Content:
Counterfeit Currency Statistics:
* The document provides year-wise data on counterfeit currency notes detected in the banking system for denominations of Rs. 100, 200, 500 (MG Series and New Series), and 2000, from 2020-21 to 2024-25.
* The total number of counterfeit notes detected ranged from 2,08,625 in 2020-21 to 2,17,396 in 2024-25.
Security Features and Printing Technology:
* The Government of India, in consultation with the RBI, continuously reviews and introduces new security features in banknotes, in accordance with Section 25 of the Reserve Bank of India Act, 1934, to stay ahead of counterfeiters.
Coordination Mechanisms:
* Coordination and information sharing occur through periodic meetings of the Fake Indian Currency Notes (FICN) Coordination Group (FCORD), set up under the Intelligence Bureau (IB) by the Ministry of Home Affairs (MHA).
* The RBI shares quarterly counterfeit note data with the Central Economic Intelligence Bureau (CEIB).
* Banks report information on cash transactions where counterfeit notes are detected to the Financial Intelligence Unit India (FIUIND) through the FINnet portal by the 15th day of the succeeding month.
* Banks upload data on counterfeit note detection on the web-enabled platform of the National Crime Records Bureau (NCRB).
* Printing presses conduct annual reviews of counterfeit currency notes and submit a report to the RBI, which then provides recommendations to the Central Government regarding revisions to the Third Schedule of the Unlawful Activities Prevention Act, 1967 (UAPA).
Impact Analysis:
Reserve Bank of India (RBI):
* Impact: Plays a key role in recommending and implementing new security features, sharing data, and coordinating with other agencies.
* Action Required: Continue to review security features, share data with CEIB, and submit recommendations to the Central Government regarding revisions to the Third Schedule of the UAPA.
Banks:
* Impact: Responsible for detecting and reporting counterfeit notes.
* Action Required: Report cash transactions where counterfeit notes are detected to FIUIND through the FINnet portal and upload data on counterfeit note detection on the web-enabled platform of the NCRB.
Ministry of Home Affairs (MHA):
* Impact: Oversees coordination through FCORD and receives recommendations regarding revisions to the Third Schedule of the UAPA.
* Action Required: Convene FCORD meetings to review emerging trends and assess threats, and consider recommendations from the RBI regarding revisions to the Third Schedule of the UAPA.
Intelligence Bureau (IB):
* Impact: Facilitates coordination and information sharing among various enforcement and intelligence agencies through FCORD.
* Action Required: Organize periodic FCORD meetings.
Central Economic Intelligence Bureau (CEIB):
* Impact: Receives and analyzes data on counterfeit notes to take necessary action.
* Action Required: Analyze data received from the RBI and take further necessary action.
Financial Intelligence Unit - India (FIUIND):
* Impact: Receives reports of counterfeit currency detections.
* Action Required: Process reports received from banks.
National Crime Records Bureau (NCRB):
* Impact: Provides a platform for data collection on counterfeit currency notes.
* Action Required: Maintain the web-enabled platform for data collection on counterfeit currency notes.
Printing Presses:
* Impact: Required to conduct annual reviews of counterfeit currency notes.
* Action Required: Conduct annual reviews and submit a report to the RBI.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for regulating the banking system and currency issuance.
Shri Sasikanth Senthil: Member of Parliament who raised the question about counterfeit currency notes.
Shri Pankaj Chaudhary: Minister of State in the Ministry of Finance who provided the answer to the question.
Ministry of Home Affairs: The Indian government ministry responsible for internal security, including combating counterfeit currency.
Intelligence Bureau: India's domestic intelligence agency, involved in detecting and preventing the circulation of counterfeit currency.
Financial Intelligence Unit India: National agency responsible for receiving, processing, analyzing and disseminating information relating to suspected financial transactions.
Central Economic Intelligence Bureau: An intelligence agency of India responsible for gathering and analyzing economic intelligence.
New Delhi: The location of the National Crime Records Bureau, which collects data on counterfeit note detection.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF ECONOMIC AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO. 3648
TO BE ANSWERED ON MONDAY, 11TH AUGUST 2025 / SRAVANA 20, 1947 (SAKA)
Counterfeit Currency Notes
3648: Shri Sasikanth Senthil:
Will the Minister of Finance be pleased to state:
(a) the number of counterfeit currency notes in the denominations of Rs. 100, 200, 500 and
2000 have been detected during the last five years, year-wise
(b) whether the Reserve Bank of India (RBI) has recommended new security features or
advanced printing technologies to curb counterfeiting and if so, the details thereof
including any pilot measures currently in implementation;
(c) whether the Government proposes to conduct a forensic or intelligence-based study to trace
the origin and circulation pattern of counterfeit notes and if so, the details thereof
(d) whether a formal coordination mechanism exists between the Government, RBI and the
Intelligence Bureau for real-time detection and prevention of counterfeit currency; and
(e) if so, the details thereof including joint operations, intelligence sharing protocols or task
forces constituted for this purpose?
ANSWER
MINISTER OF STATE IN THE MINISTRY FOR FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) As per Reserve Bank of India, Denomination-wise Counterfeit Notes detected / reported in
the Banking System (April-March) during the last five years is as under:
Denomination
2020-21 2021-22 2022-23 2023-24 2024-25
(₹)
(Number of pieces)
100 1,10,736 92,237 78,699 66,310 51,069
200 24,245 27,074 27,258 28,672 32,660
500 (MG Series) 9 14 6 11 5
500 [MG (New)
39,453 79,669 91,110 85,711 1,17,722
Series]
1,000 2 11 482 1 2
2,000 8,798 13,604 9,806 26,035 3,508
Total 2,08,625 2,30,971 2,25,769 2,22,639 2,17,396(b) to (e): Government of India, in consultation with Reserve Bank of India reviews the
effectiveness of security features of banknotes from time to time and undertakes measures to
introduce new security features in accordance with section 25 of the Reserve Bank of India
Act, 1934. Incorporating new security features/new designs in the banknotes to stay ahead of
the counterfeiters is a continuous process.
The following coordination mechanism between the Reserve Bank of India, Ministry
of Home Affairs, and Intelligence Bureau to detect and prevent the circulation of counterfeit
currency: -
i. Coordination through meetings of FCORD - Coordination and information-sharing
among various enforcement and intelligence agencies, including RBI, is facilitated
through periodic meetings of the Fake Indian Currency Notes (FICN) Coordination
Group (FCORD) – set up under Intelligence Bureau (IB) by the Ministry of Home
Affairs (MHA) – convened by MHA. These meetings serve as a platform for inter-
agency coordination to review emerging trends, assess threats, and strengthen the
institutional response to the menace of counterfeit currency.
ii. Data Sharing with CEIB - The Reserve Bank of India shares quarterly counterfeit note
data detected in the banking channel, along with its State-wise analysis for quarters
ending March, June, September, and December, with the Central Economic Intelligence
Bureau (CEIB) for their perusal and further necessary action.
iii. Reporting to FIU-IND and NCRB - As per the extant instructions under Rule 8(1) of
the Prevention of Money Laundering (Maintenance of Records) Amendment Rules,
2013, banks are mandated to report information on cash transactions where counterfeit
notes are detected to the Financial Intelligence Unit – India (FIU-IND) by the 15th day
of the succeeding month. This is done through the FINnet portal. In addition, data on
counterfeit note detection is also uploaded by banks on the web-enabled platform of the
National Crime Records Bureau (NCRB), New Delhi.
iv. Submission to MHA under UAPA - Further, as per Rule 8 of the Investigation of High-
Quality Counterfeit Indian Currency Offences Rules, 2013, framed by the Ministry of
Home Affairs (MHA), Government of India, the printing presses are required to
annually conduct a review of the counterfeit currency notes analysed by them during
the period and submit a report to the Reserve Bank of India. Based on this, RBI submits
its recommendation to the Central Government regarding revisions, if any, to the Third
Schedule of the Unlawful Activities (Prevention) Act, 1967 (UAPA)
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