Shilabhadra Committee on Fake Currency Recommendations for GS Mains 1. What is Shilabhadra Banerjee Committee? 2.

What are the recommendation of Shilabhardra Committee? 3. Background : Fake Indian Currency Notes (FICN)
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What is Shilabhadra Banerjee Committee? This Committee was formed to suggest the measures

To Increase the security features for currency notes (i.e. make it harder for Pakistanis to print fake Indian Currency) To Prepare a roadmap for progressive indigenization of various inputs. (i.e. start printing currency using desi equipment and technology instead of relying on foreign countries such as Switzerland etc. for the printing press, paper and ink). What are the recommendation of Shilabhardra Committee?

1. Create a Directorate of Currency under Finance Ministry to coordinate & oversee acquisition and R&D efforts of security features for currency notes and other security products. 2. Under this Directorate of Currency, set up a National level research and Development unit for raw material, security features and currency printing machinery. 3. Government should try indigenisation of manufacture of bank note paper, security inks, security features, related equipments and coin plating. 4. Set up a Single national level coordinating agency for intelligence, law enforcement and investigation to tackle the menace of Fake Indian Currency Notes (FICN). 5. RBI should launch a big multimedia campaign for educating the public to distinguish genuine bank note from the fake notes. Background : Fake Indian Currency Notes (FICN)

National Investigation Agency / NIA estimates that over Rs.16,000 crore worth Fake Indian Currency is in circulation. Such notes, believed to have been routed from Pakistan, have been seized not only from India but also from Nepal, Bangladesh, Afghanistan and Holland Central Economic Intelligence Bureau (CEIB) says that The NIA, the CBI, the DRI and police have detected only 28 to 30 per cent of fake currency actually circulating in the market The quantum of fake currency floating around in the country is enough to keep the terrorist machinery well-oiled and running. Price of a fake Rs 100 Indian note in Pakistan varies between Rs 26 and 30 . During the probe into the 26/11 attacks, the NIA found David Headley too had been provided with FICN by the ISI for his recce. government has decided to classify offences involving high-value FICN as terror acts with an amendment to the Unlawful Activities Prevention Act. It can be concluded that the notes have been printed on highly sophisticated machines which a common man cannot acquire, since such machines involve huge capital investment There were other similarities between the FICN and Pakistans currency the same pH value for chemical nature, the same paper density in g/sq m, and clear signs of having been printed on the same Simultan dry offset press. It proves that ISI and Pakistani state players are involved in the fake currency game. (besides, Pakistan itself lives on the charity of USA, how can it finance its war against India, except by printing fake Indian currency?)