MoU to End Fake Currency Note Menace: Outline

MoU to End Fake Currency Note Menace: Outline

Question: Fake currency notes are a menace to national security. Discuss and provide an outline of the MoU between India and Bangladesh to end the fake currency note menace.

Outline

MoU indicated two countries will share intelligence data on operatives engaged in circulation of fake indian currency notes/FICN on a constant real time basis

Advance note sorting machines will be provided to Bangladesh for detection of FICN at the following points and places:

- International airports,

- Immigration points,

- Integrated crossing points,

- Banks and financial institutions in Bangladesh

- India will also enable Bangladesh to set up a Forensic Science Lab for examining fake notes and establishing a digital depository for forensic reports pertaining to this

- Both nations will also organise capacity building training programmes

- Indian side also created awareness among security and intelligence officials regarding the nature of threat posed by FICN and the modus operandi used by criminals in this field

- Such acts have also been labelled as terror offences under the Unlawful Activities Prevention Act.

Impact of FICN

- Rise in FICN will increase money supply and inflation

- Value of real money will be lowered

- There may also be a risk of losing confidence in Indian currency

- Joint Task Force on Fake Currency Notes (JTFFC) was held in lines of pact which was signed during PM Narendra Modi’s visit to Bangladesh on 6 and 7 June, 2015

Facts and Stats

- On 13th August 2015, India and Bangladesh signed am MoU for tackling menace of fake FICN smuggling

- MoU was signed at the first meeting of the JTFFC or Joint Task Force on Fake Currency Notes in the capital city of Dhaka

- The MoU was signed by Additional Inspector-General of Bangladesh M. M. Rahman and Head of National Investigation Agency of India IG S. K. Singh.