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India to take up fake currency note issue at global fora

With a number of states reporting huge seizures of fake Indian currency notes (FICNs), India will soon take up the issue at global

fora, like Interpol, in a big way and will also ask some European countries to keep a watch on importers of currency-standard printing paper and ink to Pakistan — the country which New Delhi suspects as the base of printing and circulation of FICNs.

Although the role of Pakistani intelligence agency ISI in printing and circulation of FICN has never been a secret, sleuths of the Indian agencies found that the agency had, of late, impressed upon the government in Islamabad to import additional currency-standard printing paper and ink from companies located in UK, Sweden and Switzerland to pursue its nefarious designs in India. (via India to take up fake currency note issue at global fora – India – NEWS – The Times of India).

On September 10, 2008

The 2ndlook post on Terrorists And Counterfeit Indian Currency analyzed this situation. And laid out a logic for addressing this problem in a very simple manner.

Why Indian currency

The counterfeiting of US dollars is understandable. It is the world’s largest currency – and most acceptable. The GBP or the Euro are also reasonable targets for counterfeiting activity. Even counterfeiting the Canadian dollar!

But, the most unlikely target is the Indian Rupee! India is a small, poor economy, (at least, till about 5 years ago). India does not have capital convertibility either. So, this huge counterfeiting operation raises more questions. Is this counterfeiting related to India’s Gold reserves?

Less than 12 suppliers

The entire currency and security-grade printing is dominated by less than a dozen companies. These companies will not dare to support ‘counterfeiting’ operations – unless there is official cover or support given to them, by their respective Governments.

Now, this small clutch of currency businesses makes it simple to track the source of inks, paper, dies, plates – which can be identified by a simple spectroscopic examination. The cost of this entire examination will be far lesser than the amount of money (not fake FICN) that the Indian Government spends on fighting terror.

This is good news. The Indian Government is working on the right track. We can lick this problem.

  1. October 8, 2009 at 4:24 pm

    The basic difference between Note Sorting Machine & Desk Top Fake Note Detector/Sorter is yet to be understood by the Indian Banks as most of the banks take NSM as the panacea of all remedies against problem of infiltration of Fake Notes in banking channel and have been repeating the very same mistakes again and again !!

    Note Sorting machines basically have been designed for currency sorting processes on the basis of set criterion like designs, quality, orientations, faces, series, fitness etc but
    have not been designed aptly & exhaustively for accurate fake note detection and hence NSM can not be used as a perfect substitute of Desk Top Fake Note Detector/Sorters which are exclusively designed for the specialized process of detection of Fake Notes offering other ancillary functions useful at cash desks or at ATM centers.

    With deployment of accurate Desk Top Fake Note detector the huge investment can be recovered back by avoiding the losses on account of erroneous acceptance of fake notes at cash desks, as also heavy expenditures on consequential legal hassles and lose of Goodwill due to strict provisions of law regards to handling of fake notes, though handled unintentionally.

    Most of the recent cases of remittance of fake notes to RBI by many famous Banks have been emerged as a result of deploying wrong equipment like NSM on which highest reliance has been placed. We feel majority of cases seems to be unintentional of human attitude problems while submitting fake notes to RBI’s treasuries.

    The Speed of NSM kills the accuracy of fake note detection as it leaves behind large number of security criterions being unchecked and specifically due to incompatibility of NSM adapting digital technology which ensures the perfection. NSM can not check/scan notes pixel to pixel leading consequential inaccurate & imperfect detection of fake notes except for detecting poorly fabricated notes and thus runs with great risks of passing fake notes as genuine or rejecting genuine notes as fake or doubtful. NSM just throws out large number of doubtful notes with comparatively large number of false alarms and carries very high possibility of passing super fake notes as genuine resulting into issuance of such notes at cash counters or at ATM centers and subsequent

    While as the process of 100% accurate detection of fake notes mixed up with genuine notes it self is a different operation requiring a equilibrate combination of Data based and Image based technology where large numbers of check points are to be scanned for a perfect adjudication of fake notes.

    Just image based scanning in NSM bound to pass fake notes which also could be influenced by factors like crispiness, identical images, colors, sizes, ink, water mark, paper, spoilages folds, mutilated, physically damaged, soiled, corner fold, tear, tear, holes, missing corner, denomination, orientation, formats, adhesive taps, limpness, stains etc and those instate of getting detected fake notes would be sorted out under different criterions for which the sorter is set.

    We feel with a view to facilitating the detection of Counterfeit notes, all bank branches/treasuries, at their cash Desks, specifically branches those have been dealing with members of public for acceptance and issuance of notes, should be equipped with Automatic Fake Currency Note detectors commonly known as Desk Top Fake Notes Detector/Sorter or Automatic Currency Validity Verification and Processing Systems (ACVVPSs), instead of Note Sorting Machine.

    The kind of machines Indian Banks at cash counters needed for the fake notes detection purpose are the machine which can verify not only the images, emblems, portraits, texts, water marks, magnetic and other machine readable features of notes but also checks the physical and chemical properties of security paper, varied types of inks, resins, security threads and other materials used in production of notes, constituting large number of check points out of the interrelated combinations & permutations of varied security features in the notes, by automatic one by one pick ups of single note at a time out of the stacked packet of 100 notes of single or mixed denominations, and processes a note in 0.6 seconds and 100 notes in 1 minute. The machine meant for detection of fake notes as prime function invariably should be capable of not allowing any fake note to pass as genuine. It is possible only with the detectors specially developed considering the large number of intricacies concerning to Indian notes.

  2. Pravin
    October 9, 2009 at 4:19 am

    to be frank, the RBI is the biggest counterfeiter of them all.it has the power to print money out of thin air.the enemies of the indian state pushing fake money is a problem -true.but at a basic level the central bank of india is the biggest scamster.out with RBI -bring back sound money.

  1. August 5, 2009 at 5:32 pm
  2. August 5, 2009 at 6:48 pm

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