Skip to main content

Blogger debunks Modi's counterfeit logic for noteban, as there's high sezure rate of Rs 400 crore fake currency

Counterview Desk
Blogger James Wilson, a consultant with the Government of Kerala, debunking the popular myth that Fake Indian Currency Notes (FICN) were 30-40% of the total currency in circulation, has said, quoting official sources, that, in value terms, they did not form more than 0.0018% of the total currency in circulation in 2015-16, with a declining trend over the last five years.
Analyzing RBI Annual Reports from 2000-2001 to 2015-16 to “gather pointers about the FICN detection in the banking system”, Wilson says in a blog, the figures suggests that “the percentage of FICN in 2000-2001 was 0.0015%, which is seen steadily declined to 0.0004% up to 2005-06, which then steeply increased to 0.0023% in 2008-09 and reached to 0.0018% in the year 2015-16.”
Coming to individual currencies, the blogger says, the FICN of Rs 1000 notes, which were introduced in the circulation in 2000-2001, took eight years to cross the 0.001% of the value of the total Rs 1000 notes in circulation. “During the year 2011-12 it reach 0.0024% and more or less remain around that value till 2015-16 (0.0023%)”, the blogger reveals.
As for the FICN of Rs 500 notes, the blogger says, they were “around 0.0054% in the year 2000-01 dropping to 0.0003% in FY 2005-06, steadily rising to 0.0036% in the year 2008-09, and seen further showing a decreasing trend and reached 0.0017% during the year 2015-16, even though it is almost 50% of the currency in circulation by value basis.”
“I am at a loss”, says the blogger, to understand as to why the government decided to demonetize Rs 500 notes, which are showing a consistent decreasing trend since 2008-09. Also, the high value Rs 1,000 notes, which showed an increasing trend, became steady.”
Pointing towards another figure, the blogger reveals, the in an answer to an unstarred question, on August 5 last year, the Union finance minister replied, “A study on FICN issues, including estimation of FICN in circulation, has been undertaken by the Indian Statistical Institute (ISI), Kolkata, under the overall supervision of National Investigation Agency (NIA). As per the study, the face value of FICN in circulation was found to be about Rs 400 crore.”
The minister insisted, “It was found the value remained constant for the last 4 years.”
Pointing out that Rs 400 crore is “only 0.02% of the currency in circulation”, Wilson says, “Though it is a small quantity, FICN is used for various subversive activities such as espionage, smuggling of arms, drugs and other contraband in India. As per the NIA probe, which has a Terror Funding and Fake Currency Cell, Pakistan is the major supplier of FICN in India.”
The blogger says, official sources further suggest, “the banking system detected around Rs 30 crore of FICN annually and law enforcement agencies seized around Rs 40 crore of FICN annually for the last couple of years.”
Thus, he says, “A total of around Rs 70 crore of FICN were detected during the last couple of years by the checks and balances in the system. So, if we take the ISI, Kolkota, study as a yard stick, only Rs 70 crore of FICN of the estimated quantity of Rs 400 crore, i.e., 17.5% of the FICN is seized by our systems.”
Meanwhile, says Wilson, the ISI, Kolkota which did the study of FICN, concluded that "the existing systems of seizure and detection are enough to flush out the quantum of FICN being infused". The institute, he adds, concluded that “if detection can be improved, the value of FICN in circulation can be reduced by at least 20% annually.”

Comments

Unknown said…
This Money counting and fake note detector Machine can detect fake currency! Do you rely on these devices?

TRENDING

A Hindu alternative to Valentine's Day? 'Shiv-Parvati was first love marriage in Universe'

By Rajiv Shah*   The other day, I was searching on Google a quote on Maha Shivratri which I wanted to send to someone, a confirmed Shiv Bhakt, quite close to me -- with an underlying message to act positively instead of being negative. On top of the search, I chanced upon an article in, imagine!, a Nashik Corporation site which offered me something very unusual. 

'Anti-poor stand': Even British wouldn't reduce Railways' sleeper and general coaches

By Anandi Pandey, Sandeep Pandey*  Probably even the British, who introduced railways in India, would not have done what the Bhartiya Janata Party government is doing. The number of Sleeper and General class coaches in various trains are surreptitiously and ominously disappearing accompanied by a simultaneous increase in Air Conditioned coaches. In the characteristic style of BJP government there was no discussion or debate on this move by the Indian Railways either in the Parliament or outside of it. 

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

Why convert growing badminton popularity into an 'inclusive sports opportunity'

By Sudhansu R Das  Over the years badminton has become the second most popular game in the world after soccer.  Today, nearly 220 million people across the world play badminton.  The game has become very popular in urban India after India won medals in various international badminton tournaments.  One will come across a badminton court in every one kilometer radius of Hyderabad.  

Faith leaders agree: All religious places should display ‘anti-child marriage’ messages

By Jitendra Parmar*  As many as 17 faith leaders, together for an interfaith dialogue on child marriage in New Delhi, unanimously have agreed that no faith allows or endorses child marriage. The faith leaders advocated that all religious places should display information on child marriage.

How embracing diversity enriched my life, brought profound sense of joy

By Mike Ghouse*  If you can shed the bias towards others, you'll love the connections with every human that God or his systems have created. This gives a sense of freedom and brings meaning and joy to life. Embracing and respecting how people dress, eat, and practice their beliefs becomes an enriching experience.

'28% rise in sedition cases': Top global NGO alliance rates India's civil space 'repressed'

By Rajiv Shah Rating India's civic space as repressed , Civicus, a global civil society alliance, in its new report submitted to the UN Human Rights Committee (UNHRC) on the state of civic space in the country has said that the use of sedition law against the Modi government’s critics continues. "Under the government of Prime Minister Narendra Modi, sedition cases have increased by 28 per cent with over 500 cases against more than 7,000 people", it says.

Ayurveda, Sidda, and knowledge: Three-day workshop begins in Pala town

By Rosamma Thomas*  Pala town in Kottayam district of Kerala is about 25 km from the district headquarters. St Thomas College in Pala is currently hosting a three-day workshop on knowledge systems, and gathered together are philosophers, sociologists, medical practitioners in homeopathy and Ayurveda, one of them from Nepal, and a few guests from Europe. The discussions on the first day focused on knowledge systems, power structures, and epistemic diversity. French researcher Jacquiline Descarpentries, who represents a unique cooperative of researchers, some of whom have no formal institutional affiliation, laid the ground, addressing the audience over the Internet.

Post-poll mob lynching spree, bulldozer justice: NAPM seeks united resistance

Counterview Desk  Condemning what it calls "the horrific spree of mob lynchings across the country after the Lok Sabha election results", India's premier civil society network, National Alliance of People’s Movements (NAPM), has called for "united resistance" against "hateful communal politics, mob lynching of religious minorities and caste-based oppression".