Forged currency notes

What is a forged note?

A suspected forged note, counterfeit note or fake note is any note which does not possess the characteristics of genuine Indian currency notes.

• Rs 2000
• Rs 500
• Rs 100
• Rs 50
• Rs 20
• Rs 10

How does Reserve Bank address the problems of forged notes?

Reserve Bank is making efforts to address the problem in the following ways:

• By periodically improving the security features of Indian banknotes so that the counterfeiters find it difficult to copy.
• By ensuring that the banks have robust systems in place which will enable them to identify and detect forged notes immediately on their entry into the banking system.
• By raising public awareness on genuine Indian currency notes.
• By training of cash handlers on detection of forged notes.
• By improving co-ordination between the banks and law enforcement agencies.

Whether anyone can get exchange value for the forged notes which he or she has received unknowingly?

• Being a forged note, it has no value.

What are the legal provisions governing forged notes?

• Counterfeiting banknotes/using as genuine, forged or counterfeit banknotes/possession of forged or counterfeit banknote/making or possessing instruments or materials for forging or counterfeiting banknotes/making or using documents resembling banknotes are offences under Sections 489A to 489E of the Indian Penal Code and are punishable in the Courts of Law by fine or imprisonment ranging from seven years to life imprisonment or both, depending on the offence.
• The Government of India has framed Investigation of High Quality Counterfeit Indian Currency Offences Rules, 2013 under Unlawful Activities (Prevention) Act (UAPA), 1967. The Third Schedule of the Act defines High Quality Counterfeit Indian Currency Note. Activity of production, smuggling or circulation of High Quality Counterfeit Indian Notes has been brought under the ambit of UAPA, 1967.

What should one do if he or she unknowingly comes in possession of a forged note?

Mere possession of a forged note does not attract punishment. Possession of any forged or counterfeit banknotes, knowing or having reason to believe the same to be forged or counterfeit and intending to use the same as genuine or that it may be used as genuine, is punishable under Section 489C of Indian Penal Code, 1860.

How can we avoid taking forged notes?

While receiving banknotes, it will be a good idea to develop the habit of checking the genuineness of the notes.

Source: RBI