Fake currency pumped into India as "policy matter": Pranab

NEW DELHI: In a veiled reference to Pakistan, Finance Minister Pranab Mukherjee today said pumping of counterfeit currency is used as a "policy matter" by some countries to destabilise the Indian economy.

Responding to concerns of members in the Rajya Sabha over the problem of counterfeit currency notes, Mukherjee said it was a serious threat.

Winding up a debate on Coinage Bill, he said it was a battle the government has to fight continuously as some countries are using it as a potential tool to destabilise the Indian economy.

"Some times it is used as a policy matter. I do not want to use the names of the country. Everybody is aware of...what is their objective," he said.

Though the Finance Minister did not name any country, concerns have often been expressed over fake currency coming from Pakistan routed through Nepal.

He, however, said the counterfeit currency of the face value of only Rs 26.95 crore was detected in the calendar 2010, against Rs 23.01 crore in the previous year. Up to June in the current calendar, fake currency with face value of Rs 10.62 crore has been detected.

He said eight out of every one million notes are counterfeit, even as the members in the Rajya Sabha pointed to the widespread problem, especially in areas bordering with Nepal and Bhutan.