It is a well known fact that substantial sums of money are used in elections, with cash being used on a much larger scale than ever before. And, unless immediate steps are taken, we may find that huge amounts of fake money in circulation that will create chaotic economic conditions
Namo Narayan Meena, minister of state of finance, in a written reply to Parliament, had stated that over Rs15 crore worth of fake currency in Rs500 denominations had been detected. Apart from the Reserve Bank of India (RBI), various banks had also found counterfeit currency, many of which even fooled banking officials, who were given the choice to select the genuine from the fakes, as reported in the press.
Subsequently, in an announcement, the RBI had confirmed that, in fact, they had chosen a few selected centres in the country to introduce, on trial, polymer currency notes of Rs10 denomination to see public reaction. However, how much or how many such notes have been introduced in these markets were not stated, nor, the RBI published any assessment of reaction or acceptability from the public.
Among the test centres were Kochi and Mysore in the South. Now report is on hand that fake currency worth Rs40 lakh have been seized by the Bangalore Police, which were mostly in Rs500 and Rs1,000 notes, and these were in the possession of six West Bengal natives from Malda and their three local accomplices. When immediate tests were carried out on these fake notes, it was revealed that as against the standard 14 security features, the counterfeiters had succeeded in 10-12 counts. Obviously, any lay person would not be able to detect the difference between the genuine and fake, and thus this currency will be in circulation until it reaches a bank!
According to the Economic Offences Wing of the CID, the counterfeiters have been able to get the same ink, printing machinery and paper, most likely to have been secured from the same supply source! For further tests, these notes have been sent to Bharatiya Reserve Bank Mudran in Mysore to ascertain the make of the machine and the paper used.
Prima facie, indications are that the ISI is behind this whole operation, printing the fakes in Pakistan and routing through land routes, though some supplies have come in containers from Dubai, landing in Mumbai, and heading towards Kasargode in Kerala, where they were seized. Customs and excise inspectors lament as to how many such may have expected into various parts of the country. No reports have appeared about fake currency notes being seized from other centres.
The epicentre of this counterfeit currency appears to be Malda, in West Bengal, according to the Police sources, and with easy infiltration from Bangladesh refugees and other forms of carriers, such fakes can easily move into India.
So, what is the big worry about counterfeit currency in the country? This sort of thing has been going on for decades? A lot, considering the prospects for early Lok Sabha elections scheduled in 2014, unless the political situation precipitates sudden changes.
It would appear the very purpose of having test runs with Rs10 polymer currency notes by the RBI was to see and assess the market reaction and, perhaps, introduce the polymer notes on a gradual basis, if and when a final decision is taken by the government. We need to take care of higher denominations rather than small notes!
It is a well known fact that substantial sums of money are used in elections, with cash being used on a much larger scale than ever before. And, unless immediate steps are taken, we may find that huge amounts of fake money will be in circulation that will create chaotic economic conditions, adding to inflation.
Whether anyone is willing to admit it or not, the fact remains, that Pakistan, through its ISI is bent upon bringing about economic earthquake in India with devastating effect. Political talks may continue but India needs to be realistic and practical in its approach on such matters as economic stability in the country.
As an immediate step, the RBI must place huge orders to print polymer rupee currency notes with Australia (and others) for Rs500 and Rs1,000 denominations and start putting them into circulation immediately.
We are late in combating this menace, but it is never too late to start building brides before the flood washes out our economic system. It is grim.
(AK Ramdas has worked with the Engineering Export Promotion Council of the ministry of commerce and was associated with various committees of the Council. His international career took him to places like Beirut, Kuwait and Dubai at a time when these were small trading outposts; and later to the US. He can be contacted at [email protected].)
Even the debit and credit cards are recent addition to the family use, and that too by the
educated few.
In villages people still hoard currency notes and coins which they are more familiar with and this one reason why we need to bring in polymer notes which are not edible for white ants! Once the bulk of the Rs 500/1000 paper notes are replaced by polymers, it will be a great leap to overcome the fakes in circulation and most definitely reduce it. Total replacement can only happen by demonitising and that would take more than 10 years to achieve!
The poor in India today know how to use the cell phone but use of credit cards, banking etc will need some more time and a good amount of effort.
with polymer currency which is possibly difficult to counterfeit
because of technological sophestications but are we trying to solve this
problem superficially by doing so...
The amount of currency money in India is huge as compared to bank money and
that too most of the currency money is held in higher denomination notes Rs. 100, 500, 1000.
In such scenario counterfeiting creates huge economic nuisance.
RBI at one hand is having vision of cashless economy.
Isn't it wise to demonetize high denomination notes and promote bank money rather than
recurringly spend money on printing new sophesticated currency which is bound to be counterfeited if
not immediately then after some time when equivalent technology is made available?