How fake notes are made in India?

In counterfeit notes, the watermark is made by using opaque ink, painting with white solution, stamping with a dye engraved with the picture of Mahatma Gandhi. Then oil, grease or wax is applied to give the picture a translucent feel.

How many fake bills are in circulation?

According to the United States Department of Treasury, an estimated $70 million in counterfeit bills are in circulation, or approximately 1 note in counterfeits for every 10,000 in genuine currency, with an upper bound of $200 million counterfeit, or 1 counterfeit per 4,000 genuine notes.

How fake currency is affects the Indian economy?

Increase in fake notes shoot up counterfeit money in the system, which reduces the value of real money. It also increases inflation, i.e price of the articles and commodities due to more supply of money in the country.

How banks will handle fake currency?

No credit to customer’s account is to be given for Counterfeit Notes, if any, detected in the tender received over the counter or at the back-office / currency chest. In no case, the Counterfeit Notes should be returned to the tenderer or destroyed by the bank branches / treasuries.

What is the punishment for fake currency?

The maximum punishment, for offences related to fake currency is up to life imprisonment.

What is the punishment for fake money?

Federal Crimes Under federal law, the use or attempted use of counterfeit currency is illegal if the person has the intent to defraud the recipient. A conviction for the offense carries up to 20 years in prison and a fine.

How much U.S. currency is in circulation?

There is about $1.2 trillion dollars of U.S. currency in circulation.

Where does counterfeit money come from?

Just as most US currency circulates abroad, so most counterfeit currency is also produced abroad. South America, parts of Southern and Eastern Europe and the Far East are regions with active counterfeiting rings, which the Secret Service works constantly to break up.

What if I get a fake note?

The Reserve Bank of India (RBI) has made arrangements to give full refund to customers on receiving fake notes from ATMs. RBI has made strict rules in this regard for banks. According to RBI rules, banks will have to refund the customers as soon as possible after the fake notes are released from the ATM in action mode.

Do banks take fake notes?

Counterfeit banknotes are rare and also worthless. We cannot reimburse you for counterfeit banknotes. If you suspect that you have a counterfeit banknote, please take it to your nearest police station. The police should fill out an NCO-1 form and provide you with a receipt and incident number.

What is the punishment for fake notes?

The maximum sentence for tendering counterfeit money is ten years imprisonment. For those involved in the production of notes or coins, severe sentences typically follow, and a court may also consider making a preventative order (e.g. Karra and Karra [2015] EWCA Crim 2282).

What is the punishment for fake money in India?

The maximum punishment for offence under Section 489D (making or possessing instruments or materials for forging or counterfeiting currency) is imprisonment for life.

What are fake Indian currency notes (FICN)?

Fake Indian Currency Note (FICN) is the official term for counterfeit notes in the Indian economy. Estimates vary as to how many fake notes are in circulation. A study completed by the National Investigation Agency in partnership with the Indian Statistical Institute (ISI) stated that the value is 400 crore rupees (4 billion rupees/$53.3 million).

How many rupee notes are fake each year?

In particular, law enforcement agencies seized counterfeit currency totaling 46.06 crore rupees (0.46 billion rupees/$6.13 million) in 2017 and 2018. Fake 2,000 rupee notes comprised 53.3\% of the value in 2017, increasing to 61\% of the value in 2018. But where do the fake notes come from?

Is possession of fake notes a crime in India?

According to Indian law, possessing fake notes is a punishable offence, but only if the person in question is aware that the notes are fake. The Indian government intends to classify offences involving high-value FICN as terror acts, with an amendment to the Unlawful Activities (Prevention) Act.

What is the main source of counterfeit currency in India?

Nepal has been extensively used by traffickers because of the porous borders it shares with India. Every year, by far the largest number of counterfeit Indian currency notes is seized from Nepal. Bangladesh is another major transit route for counterfeit Indian currencies being trafficked from Pakistan.