New Delhi: In what could turn out to be a major cause of concern for India, intelligence reports suggest that China is emerging as a possible source and channel for fake Indian currency notes.
According to a report accessed by a newspaper, fake currency worth crores is being sent via "staging posts" and "distribution networks (which) have been established in China," and six other nations.
The report was prepared on March 17, 2011, by compiling key inputs from intelligence agencies such as the RAW, IB, DRI as well as investigative agencies like the CBI.
Importantly, Nepal officials had recently nabbed two persons, including a Pakistani national, with fake Indian currency notes worth Rs 5.49 million.
The report further claimed that fake notes were printed in Pakistan and then sent to countries like China, which were further sent to "wholesale" agents in India.
Fake currency pumped into India as "policy matter": Pranab
In a veiled reference to Pakistan, Finance Minister Pranab Mukherjee yesterday said pumping of counterfeit currency is used as a "policy matter" by some countries to destabilise the Indian economy.
Responding to concerns of members in the Rajya Sabha over the problem of counterfeit currency notes, Mukherjee said it was a serious threat.
Winding up a debate on Coinage Bill, he said it was a battle the government has to fight continuously as some countries are using it as a potential tool to destabilise the Indian economy.
"Sometimes it is used as a policy matter. I do not want to use the names of the country. Everybody is aware of...what their objective is," he said.
Though the Finance Minister did not name any country, concerns have often been expressed over fake currency coming from Pakistan routed through Nepal.
He, however, said the counterfeit currency of the face value of only Rs 26.95 crore was detected in the calendar 2010, against Rs 23.01 crore in the previous year. Up to June in the current calendar, fake currency with face value of Rs 10.62 crore has been detected.
He said eight out of every one million notes are counterfeit, even as the members in the Rajya Sabha pointed to the widespread problem, especially in areas bordering with Nepal and Bhutan.