A year after demonetisation, seizures of fake notes see sharp dip

NEW DELHI: Recoveries and seizures of fake Indian currency notes (FICN) in the year following demonetisation have witnessed a sharp drop from the levels recorded in 2016 and 2015.

The face value of counterfeit Indian currency seized across the country between November 2016, when demonetisation was announced, and November 6, 2017, totalled Rs 16 crore, less than one-third of the Rs 51.3 crore seized in 2016. In 2015, this figure was Rs 44.2 crore, according to data on FICN seizures accessed by TOI.

Besides the steep decline in FICN recoveries and seizures, what is described as equally significant by officials is that none of the fake currency notes caught post-demonetisation were of high quality.

"In fact, they were found during physical and forensic examination to be mere photocopies or computer scans of real currency notes". The common features that run through FICN recovered or seized between demonetisation and now are its poor print quality, absence of micro-lettering, use of thick paper, poorly attempted water-marks, no optical variable ink and colourshift effect in denomination numerals and security thread, absence of intaglio or raised effect and uneven windowed effect in security thread.

"No security feature was breached in fake notes seized after November 8, 2016. Only poor imitation attempts have been made," an officer said. A home ministry official said the dip in FICN seizures is a positive development in efforts to counter terror financing.

"A good part of terror funds were pumped in by Pakistan in form of high-value FICN printed by ISIbacked syndicates. However, they are yet to replicate security features of the new notes," the official claimed.

As per data on domestic FICN recoveries and seizures since 2015 as well as specifically for the year following demonetisation, the face value of recoveries between November 2016 and November 6, 2017 was down to just Rs 2.1 crore as compared with Rs 36.15 crore in 2016 and Rs 28.72 crore in 2015. However, the face value of FICN seizures by law enforcement agencieswas only slightly lower at Rs 13.92 crore between November 2016 and now, as against Rs 15.15 crore in 2016 and Rs 15.48 crore in 2015.

Monthly break-up of FICN recoveries and seizures between November 2016 and November 2017 (till 6th) shows the face value of seizures peaked in March 2017 (Rs 5.2 crore) and April 2017 (Rs 3.2 crore).