CBEC plans to reward informers of fake currency racket

“We have proposed that 8 per cent of the notional value of the entire seizure would be given to the informers of fake currency notes and such rackets. The notional value has been arrived at in consultation with the Central Bureau of Investigation and the Intelligence Bureau,” the official said. Notional value is the price the fake currency notes would fetch in the market.

The problem of counterfeit currency has reached alarming proportions since 2006 and what is worrisome is that the fake notes being printed outside the country are of very high quality.

“According to our intelligence,at least 12 security features have been breached by such rackets operating outside the country,” the official said adding that there are suspicions that the fake currency is also being used for terror funding.

According to the FIU report,private sector banks reported the maximum number of counterfeit currency transactions — 1,15,720 transactions in 2009-08 compared to 29,846 a year ago — followed by private foreign banks which submitted 3,572 such reports during the last fiscal year.

A total of 1,27,781 counterfeit currency reports were received in 2009-10 by the FIU compared to 35,730 reports during 2008-09. Over 1.72 lakh incidents of detection of fake currency notes with a face value of Rs 10 crore were received.

In the current year,as per data available on the department’s website,counterfeit currency notes worth over Rs 1.69 crore has been seized,and there are apprehensions that most of it has come from Bangladesh and Nepal into India.

Recently,Rs 50 lakh worth fake currency notes were seized from a Pakistani woman at Dhaka airport by Bangladeshi authorities.

“Mainly,Rs 500 and Rs 1,000 notes are in circulation. We hope that the reward scheme will increase the information on fake currency,” the official said.

Last month,ex-chairman of CBEC SD Majumdar had expressed serious concern over large-scale smuggling of fake Indian currency notes from Bangladesh and Nepal through the international borders along West Bengal and the Northeast region like Malda and Petrapole.

Currently,for informing about commercial frauds,drugs,gold smuggling and other such malpractices,the government has a policy of rewarding the informers and 20 per cent of the recovered amount or the notional value is given.

In fact,even for officers there is a reward system similar to that of whistleblowers. Initially,the reward was 20 per cent but later a cap of Rs 1 lakh was placed.

Money trail

* A total of 1,27,781 fake currency transactions was reported in 2009-10 against 35,730 reports in 2008-09

* Private banks reported the maximum fake currency transactions — 1,15,720 transactions in 2009-08 followed by private foreign banks which submitted 3,572 reports last fiscal

* There are apprehensions that most fake currency notes sneak into India from Bangladesh and Nepal border

* Recently,R50 lakh worth fake notes were seized from a Pakistani woman at the Dhaka airport