Committee suggest formation of an agency to tackle fake currency notes

NEW DELHI - A committee constituted to review the acquisition procedure of the security features for currency notes has suggested that the Union Government set-up a single national-level coordinating agency for intelligence, law enforcement and investigation to tackle the menace of fake currency notes.

The Union Finance Ministry had constituted a committee to review matters related to the acquisition procedure of the security features for currency notes, review the relevant procurement manuals and suggest a roadmap for progressive indigenization of various inputs, including high-end machinery and security features.

Former secretary Shilabhadra Banerjee chaired the committee.

The committee, which submitted its report to Union Finance Minister Pranab Mukherjee on Thursday, suggested creating a directorate of currency under the Union Finance Ministry to coordinate and oversee acquisition as well as research and development (Rand D) efforts of security features for currency notes and other security products.

This Directorate is to be headed by a Special Secretary to the Government of India.

In its report, the committee has also recommended the setting up of a national level research and development (R and D) centre under the proposed Directorate of Currency to carry out R and D activities in the field of raw materials, security features and machinery required for the production of Indian bank notes and other security sensitive items.

The Committee has suggested a new acquisition procedure for the security features of currency notes for increased levels of transparency and accountability.

In its report, the committee emphasised on the indigenisation of manufacture of bank note paper, security inks, security features, related equipments and coin plating.

The report said the security paper manufactured in India is to be exempted from excise duty.

It asked the government to provide financial incentives like a waiver of customs duty on imported machinery for the production of bank note paper and printing materials.

Mukherjee appreciated the work done by the Committee and emphasized the early implementation of the recommendations made by the Finance Ministry. (ANI)