Parliament Question: Counterfeit Currency Notes

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) *****