Counterfeit notes may impact inflation, says RBI
"The Reserve Bank of India has informed that the presence of large number of counterfeit notes may impact inflation and can be used for anti-national activities," said Minister of State for Finance Namo Narain Meena in a written reply in the Lok Sabha.
He, however, said no estimates of counterfeit currency in circulation was available.
The Minister further said the Ministry of Home Affairs has informed that an intelligence body to track the source and origin of Fake Indian Currency Notes (FICN) has been formed.
Counterfeit money may lead to increase in prices (inflation) due to more money getting circulated in the economy - an unauthorised artificial increase in money supply.
To address the multi-dimensional aspects of the FICN menace, several agencies such as the RBI, Ministries of Finance and Home Affairs, CBI, are working in tandem to thwart the illegal activities related with the FICN.
"The work of these agencies is periodically reviewed by a nodal group (FCORD) set up for this purpose," Meena said.
FCORD (FICN Coordination Cell) coordinates and shares all available information and intelligence on circulation and smuggling of the FICN in the world.
National Investigation Agency (NIA) has been empowered to investigate and prosecute such offences to deal with the menace.
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