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

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

TRENDING

Hindus to be 'sent' to Kashmir? Despite Israeli settlements, peace eludes the region

By Anand K Sahay*
Curfew, news and communications blackout, transportation shut-down... News reports from Kashmir are worrying. So are the views relayed through the media, especially television. Old-fashioned repression seems to be consorting comfortably with expressions of concern “for our Kashmiri brethren”. We are looking at Orwell’s 1984 in the making.

Impact of state repression? Kashmir's 65% people prefer independence: Cambridge study

By Rajiv Shah 
Even as the Government of India’s controversial move to abrogate Article 370 of the Constitution and bifurcate Jammu and Kashmir (J&K) into two union territories is not only refusing to down die but has acquired international dimensions, a recent study, published by the Cambridge University Press, has claimed “pro-independence attitudes” among that 65% of Kashmiris, warning, this sentiment worsens when the state machinery resorts “repressive violence”.

Dholera 'inundated': Gujarat govt tries selling low lying area as top smart city site

Counterview Desk
Even as the Dholera Special Investment Region Regional Development Authority (DSIRDA) of the Gujarat government was busy organising a junket for Gujarat-based journalists for the area sought to be sold as an ideal special investment region (SIR) for industrialists, well-known farmers' activist Sagar Rabari has wondered why no investor has so far agreed to put in money in an area situated in Ahmedabad district along the Gulf of Khambhat.

Congress' anti-democratic laws led to Modi govt's 'Constitutional' changes: Scholars

Counterview Desk
A large number of academics* said to be belonging to several Indian and international institutions, even as taking strong exception to the Narendra Modi government's alleged move to amend the Constitution through "illegitimate" means, have taken strong exception to their colleagues in academia who we have become "all too accustomed to adopting a calculated silence in the face of such indignities."

Kashmir normal? Schoolboys, teenagers being arbitrarily picked up, detained: Report

Counterview Desk
A four-person team, consisting of Jean Dr├Ęze, well-known development economist; Kavita Krishnan, who is with the Communist Party of India (Marxist-Leninist); Maimoona Mollah of the All India Democratic Women's Association (AIDWA); and Vimal Bhai of the National Alliance of People's Movements (NAPM), back from a five-day fact-finding mission (August 9-13) from Kashmir, has said that people they spoke to “expressed their pain, anger, and sense of betrayal against the Government of India.”
In a report, “Kashmir Caged”, released along with a short eight-minute film, they said, the abrogation of Articles 370 and 35A, dissolution of the state of Jammu and Kashmir (J&K), and bifurcating it into two Union Territories, is not being supported by anyone they met, except for BJP spokesperson on Kashmir affairs Ashwani Kumar Chrungoo, who claimed 46% vote share in J&K.
Excerpts from the report: When our flight landed, and the airlines staff announced that passeng…

Modi's Gujarati mind? Why govt move to 'sell-off' defence PSUs isn't in national interest

By Sandeep Pandey*
The Standing Committee on Defence, 2017-18, of the 16th Lok Sabha highlights the idea of Buy Indian-IDDM (Indigenously Designed Developed and Manufactured). The Committee expressed concern over the import content of equipments produced and developed by Defence Research and Development Organisation (DRDO), Ordnance Factories (OFs) and defence Public Sector Undertakings (PSUs) because of the dependence it creates for military hardware on foreign suppliers.

Central Gujarat effluent channel 'releasing' highly polluted industrial wastewater: PM told

Counterview Desk
Senior environmentalists of the Paryavaran Suraksha Samiti (PSS), Vadodara, Rohit Prajapati and Krishnakant, in an open letter to the Prime Minister, the Gujarat chief minister, the Gujarat chief secretary, and senior Government of India and Gujarat government officials dealing with environment, pollution and climate change have said that the authorities’ response their pleas to take action against the leakages and flow of polluted wastewater from the effluent channels of Central Gujarat industrial areas has met with complete inertia.

Can't go to court with RTI information, rule Ahmedabad authorities: Kankaria accident

By Pankti Jog*
In a shocking reply to an application filed by me, the Ahmedabad Municipal Corporation (AMC) authorities have said that the information provided under the Right to Information (RT) Act should be used in court or in a judicial process. The Act is known to be a major tool that enables citizens to seek certified copies of documents, records from any public authority of state and Central government within 30 days, as per provisions of the Act.

Quit India Movement 'betrayal' and dubious role of Hindu Mahasabha, RSS leaders

By Shamsul Islam*
After the recent guillotine of Article 370, Hindutva ideologue Ram Madhav, while celebrating the occasion stated that it was honouring of the sacrifices of Dr Shyam Prasad Mukherjee and thousands others who laid down their lives for its removal. It is to be noted that Dr Mukherjee was a cadre of RSS and was groomed into a Hindutva leader by another Hindutva icon, VD Savarkar.

Strategy for united struggle against Hindutva 'fascism': Ideological silence is 'no option'

By Dr Bhabani Shankar Nayak*
Electoral alliance and opportunism of national and regional political parties, neoliberal economic marginalisation and soft secular Hindutva line pandering to Hindu majoritarianism laid the foundation of Hindutva fascism in post-colonial India.