In an attempt to thwart the increasing circulation of counterfeit currency in the system, the Government of India along with the currency issuing authority in the country, RBI is planning to incorporate latest security features in the banknotes.

The government appointed a high-level committee led by the home secretary to identify obstinate security features which can be embraced in the government issued currency to combat counterfeiting.

Centre has nominated the Central Bureau of Investigation as nodal body for monitoring investigations related to fake currency notes.

The committee draws members from Intelligence Bureau, besides top officials of Central Bureau of Investigation (CBI). The constituted taskforce will seek advice of foreign forensic experts and international institutions on the matter.

The committee was constituted only recently in wake of increasing number of forged currency cases.

The government last introduced security features in the currency back in 2005.

According to National Crime Records Bureau report, counterfeit currency notes valued more than Rs 4.09 crore were confiscated during the first quarter of current fiscal. The report also revealed that the maximum numbers of fake notes are in denomination of Rs 100, followed by Rs 500 and then by Rs 1,000 denominations.

The total value of counterfeit currency seized through banking channels and by law enforcement agencies almost doubled from Rs 10.5 crore in 2007 to Rs 21.45 crore in 2008.

The government has also issued guidelines for banks on the matter and has also advised state governments to set up state-level committee to tighten vigilance against circulation of forged notes in the system.

In India Reserve Bank has the sole authority to issue banknotes. Under Section 25 of RBI Act, 1934 the Central Government is empowered to approve banknotes designed by RBI.

In India Reserve Bank has the sole authority to issue banknotes. Under Section 25 of RBI Act, 1934 the Central Government is empowered to approve banknotes designed by RBI.