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Currency Counterfeiting Issues and Strategies. 1945-46 – 23,790 counterfeits valued at Rs.1,21, 534 out of which 12,306 notes were of Re.1 With the increase.

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Presentation on theme: "Currency Counterfeiting Issues and Strategies. 1945-46 – 23,790 counterfeits valued at Rs.1,21, 534 out of which 12,306 notes were of Re.1 With the increase."— Presentation transcript:

1 Currency Counterfeiting Issues and Strategies

2 – 23,790 counterfeits valued at Rs.1,21, 534 out of which 12,306 notes were of Re.1 With the increase in the notes in circulation the number of counterfeit banknotes detected have gradually increased over the years. With the increase in the notes in circulation the number of counterfeit banknotes detected have gradually increased over the years. Counterfeit banknotes detected during the last five years (April- March) Counterfeit banknotes detected during the last five years (April- March) Introduction of CVPS in the currency chests during 2002 has led to large detection of counterfeit banknotes; until then the same was manually detected. Introduction of CVPS in the currency chests during 2002 has led to large detection of counterfeit banknotes; until then the same was manually detected. The RBI has now in place 54 CVPS and 28 SBS at its 19 Offices. The RBI has now in place 54 CVPS and 28 SBS at its 19 Offices. The data given alongside are exclusive of the counterfeit banknotes seized by police and other enforcement agencies. The data given alongside are exclusive of the counterfeit banknotes seized by police and other enforcement agencies ,13,864(3.56) ,05,226(2.76) ,81,928(2.44) ,23,917(1.77) ,04,743(2.32)

3 Average number 10,000 pieces during 40s After 80s the counterfeits witnessed to 40,000 to 50,000 per year. The quality of counterfeits was quite good. Our notes generally have security features like watermark, embedded security thread and intaglio printing only on Rs.100 denomination. After 80s the counterfeits witnessed to 40,000 to 50,000 per year. The quality of counterfeits was quite good. Our notes generally have security features like watermark, embedded security thread and intaglio printing only on Rs.100 denomination.

4 Mahatma Gandhi Series In 1996, the issue of new design banknotes in Mahatma Gandhi series with latest security features. In 1996, the issue of new design banknotes in Mahatma Gandhi series with latest security features. The long gap for issues of this is mainly because of procurement of modern machinery for Government Printing Presses and setting up of BRBNMPL The long gap for issues of this is mainly because of procurement of modern machinery for Government Printing Presses and setting up of BRBNMPL

5 Withdrawal of Ashoka Pillar Watermark – Rs.500 In 1997 Bank initiated action to phase out 1987 series of Rs.500 denomination from circulation. Over 1000 counterfeit banknotes of Rs.500 denomination were seized by the Police and they revealed that these notes were smuggled into the country. All the security features except intaglio printing and latent image were successfully imitated. Hence the Bank widely publicised the security features of Rs.500 denomination to enable people to identify the counterfeit banknotes. In 1997 Bank initiated action to phase out 1987 series of Rs.500 denomination from circulation. Over 1000 counterfeit banknotes of Rs.500 denomination were seized by the Police and they revealed that these notes were smuggled into the country. All the security features except intaglio printing and latent image were successfully imitated. Hence the Bank widely publicised the security features of Rs.500 denomination to enable people to identify the counterfeit banknotes.

6 Counterfeits of Mahatma Gandhi series notes of Rs.500 and Rs.100 By the year 1999, even the newly designed Mahatma Gandhi series were counterfeited and started flooding in the market. Except for the poor quality of paper, devoid of intaglio printing, windowed security thread and latent image the counterfeiters posed a challenge to the authorities including the Bank. By the year 1999, even the newly designed Mahatma Gandhi series were counterfeited and started flooding in the market. Except for the poor quality of paper, devoid of intaglio printing, windowed security thread and latent image the counterfeiters posed a challenge to the authorities including the Bank.

7 Education Campaign The Bank therefore launched a massive education campaign in the print and electronic media on the security features of Rs.500 notes. The Bank therefore launched a massive education campaign in the print and electronic media on the security features of Rs.500 notes. The Bank also added a new security feature viz. Optically Variable Ink (OVI) in the numeral of 500 of Rs.500 notes The Bank also added a new security feature viz. Optically Variable Ink (OVI) in the numeral of 500 of Rs.500 notes These notes were issued in circulation from November These notes were issued in circulation from November 2000.

8 High Level Committee – Gaikwad Committee – February 2000 This Committee recommended several measures including incorporation of additional security features to counter the counterfeiting menace. This Committee recommended several measures including incorporation of additional security features to counter the counterfeiting menace. The major revision in the design of all the denomination of banknotes was introduced in the year These include (a) demetallised, magnetic and machine readable windowed security thread with a colour shift from green to blue in Rs.100, Rs.500 and Rs.1000 denominations; (b) improved intaglio printing; (c) improved see-through feature incorporating the denominational numeral instead of the floral design and (d) electrotype watermark featuring the denominational numeral alongside Mahatma Gandhi portrait in the watermark window. The major revision in the design of all the denomination of banknotes was introduced in the year These include (a) demetallised, magnetic and machine readable windowed security thread with a colour shift from green to blue in Rs.100, Rs.500 and Rs.1000 denominations; (b) improved intaglio printing; (c) improved see-through feature incorporating the denominational numeral instead of the floral design and (d) electrotype watermark featuring the denominational numeral alongside Mahatma Gandhi portrait in the watermark window. Presently, with the advent of high quality of reprographic and computer technology, counterfeiters have been successful in matching the quality of genuine banknotes to a large extent. Presently, with the advent of high quality of reprographic and computer technology, counterfeiters have been successful in matching the quality of genuine banknotes to a large extent.

9 National Security Council Secretariat The Government of India constituted a Special Task Force in the National Security Council Secretariat and also established that the Fake Indian Currency Notes were printed in the neighbouring countries and are being smuggled into the country from all directions. The Government of India constituted a Special Task Force in the National Security Council Secretariat and also established that the Fake Indian Currency Notes were printed in the neighbouring countries and are being smuggled into the country from all directions.

10 Strategies The Security Features in banknotes are reviewed and upgraded from time to time with the approval of Government of India. The Security Features in banknotes are reviewed and upgraded from time to time with the approval of Government of India. Reserve Bank has issued instructions to all banks to constitute Forged Note Vigilance Cells at their Head Office with a Nodal Officer to – Reserve Bank has issued instructions to all banks to constitute Forged Note Vigilance Cells at their Head Office with a Nodal Officer to – a. Monitor and implement RBI instructions in this regard; a. Monitor and implement RBI instructions in this regard; b. Compile data on detection of counterfeit banknotes; b. Compile data on detection of counterfeit banknotes; c. Follow-up counterfeit banknote cases with investigation agencies c. Follow-up counterfeit banknote cases with investigation agencies RBI issued instructions to all banks to put in place proper systems to ensure that counterfeit banknotes are not dispensed or disbursed through any means including ATMs RBI issued instructions to all banks to put in place proper systems to ensure that counterfeit banknotes are not dispensed or disbursed through any means including ATMs Publicity Campaigns are held by our Issue Offices for the benefit of Police Authorities, banks, utility organizations handling large value of cash. Publicity Campaigns are held by our Issue Offices for the benefit of Police Authorities, banks, utility organizations handling large value of cash. Banks have been advised to install Ultra Violet Lamps and Note Sorting Machines at their branches. Banks have been advised to install Ultra Violet Lamps and Note Sorting Machines at their branches.

11 Nodal Officers – Appointed by CBI The matter with regard to currency counterfeiting was referred to Central Bureau of Investigation, Ministry of Home Affairs, Government of India who have forwarded the list of Nodal Officers of each State to tackle the difficulties faced by each Office/bank in filing of FIR on detection of counterfeit banknote. The matter with regard to currency counterfeiting was referred to Central Bureau of Investigation, Ministry of Home Affairs, Government of India who have forwarded the list of Nodal Officers of each State to tackle the difficulties faced by each Office/bank in filing of FIR on detection of counterfeit banknote.

12 RBI - Measures While RBI has been taking the requisite steps to attack the menace of counterfeiting the problem, the same cannot be tackled without the active support of law enforcing agencies. The proactive and sustained measures taken together against counterfeiting can eradicate the problem from its roots. The introduction of new/additional security features in all denominations during the year as well as introduction of star series Banknotes in the denomination of Rs.10, Rs.20 and Rs.50 during the year will maintain confidence of the public in the Banknotes. While RBI has been taking the requisite steps to attack the menace of counterfeiting the problem, the same cannot be tackled without the active support of law enforcing agencies. The proactive and sustained measures taken together against counterfeiting can eradicate the problem from its roots. The introduction of new/additional security features in all denominations during the year as well as introduction of star series Banknotes in the denomination of Rs.10, Rs.20 and Rs.50 during the year will maintain confidence of the public in the Banknotes.

13 Law Criminal Penal Code – Section 154 Criminal Penal Code – Section 154 Indian Penal Code – Section 289 A to E Indian Penal Code – Section 289 A to E Thank you! Thank you!


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