Fake notes worth Rs 400 crores in circulation: Study

NEW DELHI: 250 in every 10 lakh notes in circulation in India are fake and Rs 400 crore worth of such fake currency is in circulation in the country at any given point of time. The first ever study of counterfeit currency has unearthed fake Indian currency notes (FICN) worth Rs 70 crore are infused into the Indian market every year with agencies only being able to intercept one third of them.

These shocking revelations are part of the study on "Estimation of the quantum of FICN in circulation", conducted by the Indian Statistical Institute (ISI) Kolkata, which has asked the government to take "immediate steps", since these figures are only indicative of the extent of the menace.

The findings have been accepted by the government and a series of strong measures to counter this 'economic terrorism' is being planned in consultation with the primary FICN detection and probe agency, National Investigation Agency, besides other security and intelligence agencies including CBI, IB, DRI, R&AW and state police departments.

The study has further revealed that the detection rate of fake 100 and 500 rupee notes were found to be about the same and higher than the detection rate of 1000 rupee notes by about 10%. It added that fake 1,000 rupee notes constitute about 50% of the total value of FICN.

The ISI study was based on volumes of FICN detected and cash transaction in the banking sector. The study said that "the detection of FICN is carried out primarily by commercial banks. However, their reporting is irregular too and only three banks - Axis, HDFC and ICICI report about 80% of the detection". ISI, however, concluded that "the existing systems of seizure and detection are enough to flush out the quantum of FICN being infused". The institute says that if detection can be improved, the value of FICN in circulation can be reduced by at least 20% annually.

As per the NIA probe, which has a Terror Funding and Fake Currency Cell, Pakistan is the major supplier of FICN in India. "In 2015 alone, some 9-10 cases have come to the notice where FICN has come by sea or air from Pakistan," said NIA inspector general Alok Mittal.