Prime Minister Narendra Modi’s move to demonetise Rs 500 and Rs 1,000 notes has delivered a massive blow to Pakistan-based syndicates involved in pushing counterfeit currency notes into India.
Frustrated over this, they are now planning to produce high quality fake Rs 100 notes and flood it into the Indian markets within the coming period.
A National Investigation Agency (NIA) official said Pakistan still has the system (equipment, printing machines, and paper) to imitate Rs 100 notes.
“Though these are of lower value, they will be used to their optimum capacity to destabilise our economy,” the official said.
Security officials fear that given the lack of Rs 100 notes, it is likely that people will grab them as they are in dire need of it.
An organised criminal network has been working in Pakistan’s Peshawar to print only fake high quality Indian currency notes, mostly in Rs 500 and Rs 1,000 denomination. The mint, run by Pakistan’s intelligence agency ISI, uses its channels (LeT, Dawood Ibrahim, etc.) to pump fake currency into India.
The NIA, tasked to investigate terrorism cases including those related to Fake Indian Currency Network (FICN), has in its investigations ascertained Pakistan to be the principal source of printing high quality counterfeited notes.
Every year, Pakistan was pushing into India around Rs 70 crore, for use as ‘terror fund’ and to spearhead disturbances.
The RBI’s currency management report released in August this year shows that denomination-wise the Rs 100 note constitutes 17.5 per cent of the total banknotes in circulation.