Fake Indian currency seized by security and intelligence agencies has increased every year since 2017. Data on the fifth anniversary of DEMONETIZATION showed that there was a jump of 190% in 2020 compared to the previous year. Seizures remain a concern for 2021. On 8 November 2016, Prime Minister Narendra Modi ₹1,000 and ₹500 notes were discontinued. One of the stated objectives of demonetisation was to get rid of the high sect counterfeit currency, mostly printed in Pakistan.

Before demonetisation, a study done by Indian Statistical Institute Kolkata It is estimated that counterfeit currency worth ₹70 crore was injected into the economy every year. Although demonetisation has temporarily reduced its volume, seizures of counterfeit currency have increased steadily since 2017 except in 2018. National Crime Records Bureau, the high quality counterfeit currency seized in 2020 was more than ₹92.17 crore as compared to ₹25.39 crore in 2019, ₹17.95 crore in 2018, ₹28.10 crore in 2017 and ₹15.92 crore in 2016 after demonetisation.

Fake ₹2000 notes were a major part of the seizures made by the state police, the National Investigation Agency and the Directorate of Revenue Intelligence. “Forensic analysis of counterfeit ₹2000 notes has revealed features like transparent area, watermark, Ashoka Pillar emblem, ‘2000’ printed on the left side and guarantee clause. reserve Bank of India The signature of the Governor was reiterated. However, in many cases, the quality of FICNs printed with the help of printers and scanners was found to be low,” said a senior government official.

The DRI analysis indicated that the quality of the seized counterfeit notes has improved. Union Home Ministry officials said that several steps have been taken to check circulation of counterfeit notes. In 2015, India signed a Memorandum of Understanding with Bangladesh to prevent and combat the smuggling and circulation of counterfeit notes. Subsequently, the FICN Coordination Group was set up in North Block to share intelligence between the security agencies of the Center and the states. Thereafter, a dedicated Terror funding and fake currency sale was formed in NIA To conduct focused investigations into terror funding and counterfeit currency cases. The NIA has registered 12 cases on seizure of high quality fake Indian currency in recent years. “We have also strengthened security along international borders by setting up surveillance posts, by deploying additional manpower, by using new surveillance technology,” an official said.