NEW DELHI: Minister of State for Home Kiren Rijiju on Friday said smuggling of fake Indian currency notes (FICN) has completely stopped from three international borders – Pakistan, Bangladesh and Nepal – following the demonetization of Rs 1000 and Rs 500 notes.
“Smuggling of FICN from three international borders -- Pakistan, Bangladesh and Nepal -- has completely stopped after the announcement of demonetization by Prime Minister Narendra Modi,” Rijiju told reporters.
The minister said FICN worth around Rs 400 crore were in circulation in the economy at any given point in time and the decision (demonetization) was a major assault on black money and fake currency.
Quoting Intelligence reports, a senior Union Home ministry official said counterfeit currency with the face value of Rs 70 crore was introduced by the inimical interests every year in the country.
“Proceeds of illegal sale of drugs, opium and arms have also been completely stopped along with hawala transaction,” the official said.
Intelligence sources said fake notes with face value of Rs 12.35 crore were seized by the security agencies till June this year.
In 2015, counterfeit currency with face value of Rs 34.99 crore were seized followed by Rs 36.11 crore in in 2014 and Rs 42.90 crore in 2013. However, there are wide variations in the estimates of fake currency in circulation in the economy as Pakistani agencies have copied 90 per cent of the security features in the original currency notes. Barring the security thread, Pakistan has copied all the aspects including water mark, ink, motifs and currency paper, sources said.
An estimated Rs 700-Rs 800 crore terror funding is done in India out of which Rs 300-Rs 400 crore are being used by Naxals annually, Rs 20-Rs 30 crore by terrorist groups and Rs 350-Rs 400 crore by insurgents in the Northeast.
The Home ministry has special FICN coordination group to share intelligence among different security agencies of states to crackdown on the circulation of fake currency notes. A terror funding and fake currency cell have also been established under the National Investigation Agency to stop terror funding and FICN activities.
“There has been a complete lull in the activities of the fake currency mafia after the old currency notes of Rs 1000 and Rs 500 were invalidated,” said an official.