To address the menace of counterfeit currency notes, the government plans to strengthen the security features.
"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 on Saturday. He was speaking at foundation stone laying ceremony of Bank Note Line at Security Paper Mill (SPM) here.
He said, the government is ensuring 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 said. A committee of officials from the Department Economic Affairs, Reserve Bank of India, 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 bank note. "It is expected these two-pronged strategy to fight the menace 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 said.
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," he said.
