Value of fake currency seized declined 80 pc since 2016-17, MoS Finance informs Parliament

New Delhi [India], August 8 : The value of counterfeit notes detected in the banking system has reduced from Rs 43.47 crores in 2016-17 to Rs 8.26 crores in 2021-22 -- a decline of around 80 per cent, Union Minister of State for Finance Pankaj Chaudhary informed Lok Sabha on Monday.
Chaudhary said this in reply to a question on whether the value of fake Indian currency notes has gone up since demonetisation in 2016.
As per the report of the agencies, there have been instances where it has been found that the fake currency has been smuggled from neighbouring countries, the minister said.
"While notes seized by different law enforcement agencies have gone up, there is a discernable trend of reduction in the number of counterfeit notes detected in the banking system," he said.
Further, the number of counterfeit banknotes has come down from Rs. 7.62 lakh pieces in 2016-17 to Rs. 2.08 lakh in 2020-21.
The number of counterfeit banknotes has come down, the minister said, because of the decision of the government to cancel the legal tender status of Rs 1,000 and Rs 500 denomination currency notes on November 8, 2016.
The decision of demonetisation had several objectives including curbing of circulation of fake Indian currency notes (FICN).
To counter the smuggling of fake notes, a joint task force is functioning between India and Bangladesh for building trust and cooperation for the exchange of information and analysis of smugglers of FICN. A Memorandum of Understanding (MoU) was signed between Indian and Bangladesh to prevent and counter the smuggling and circulation of fake currency notes.
In addition, training programmes are conducted for the police officials of Nepal and Bangladesh to sensitise them about smuggling or counterfeiting of Indian currency, the minister replied.