To address the menace of counterfeit notes, the government plans to strengthen the security features of the Indian currency and will increase the risk factors for carriers of fake notes.
To address the menace of counterfeit notes, the government plans to strengthen the security features of the Indian currency and will increase the risk factors for carriers of fake notes.
"India is a victim of injection of fake currency in our economy. There are indications that fake currency is being injected from some of our neighbouring countries either as a source or as a route," Finance Minister Pranab Mukherjee said today.
He was speaking at foundation stone laying ceremony of Bank Note Line at Security Paper Mill (SPM) here.
At the same time, he said, the government is ensuring that the enforcement mechanism acts as deterrence to those who are involved in the circulation of fake currency.
The efforts have been to increase the risk factors for carriers of fake currency in India, the minister said.
"The effort of the government is to make security features of Indian currency so strong that it becomes highly difficult to fake," Mukherjee added.
A committee of officials from Department Economic Affairs, Reserve Bank, Bhartiya Reserve Bank Note Mudran, Security Printing and Minting Corp and security agencies has been constituted for short listing of security features through global competitive bidding.
Besides, a separate committee of RBI is finalising the new design of the next series of the Indian Bank Note.
"It is expected that this two-prong strategy of the government to fight the menace of fake currency in India will yield substantial results in years to come," he said.
Mukherjee said that efforts are also being made to indigenise the requirement of currency paper.
"I am told that the procurement of one line costing about Rs 489 crore is in process, which will further strengthen our indigenous capacity," he added.
Order for design, procurement, supply, installation and commissioning of CWBN paper line of 6000 MT has already been placed at a cost of about Rs 445 crore. The project is likely to be completed by October, 2013.
"The completion of the project will reduce our dependence on foreign supplier. This will also reduce the possibility of diversion of papers supplied by foreign supplier to other destinations for the purposes of generating fake currency," Mukherjee said.
He said the long term goal should be to meet the domestic requirement related to currency and subsequently cater to the demand of the international market.
The requirement of specific type of inks used in currency printing is likely to be fully made by Bank Note Press, Dewas by upgrading the ink factory. The modernisation of the factory is under process, he added.
A joint venture company called Bank Note Paper Mill India for the production of indigenous currency paper has been set up at Mysore with 50:50 equity participation by SPMCIL and Bhartiya Reserve Bank Note Mudran, a subsidiary of RBI. This paper mill will have capacity to produce 12,000 tonnes of currency paper annually.
The planned currency paper production of JV combined with production at SPM, Hoshangabad will be able to produce about 21,000 MT of paper annually.
This will meet about 90 per cent of the currency paper requirements by 2014 end.
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