The committee constituted to review 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 submitted its report to the Finance Minister Shri Pranab Mukherjee in his North Block Office in New Delhi today. A presentation was also made highlighting the main issues and recommendations thereof. Main recommendations of the Committee are as under:
- Directorate of Currency to be created under Ministry of Finance to coordinate & oversee acquisition and R&D efforts of security features for currency notes and other security products. This Directorate to be headed by an officer of the rank of Special Secretary to Govt. of India;
- Suggested new acquisition procedure for the security features of currency notes for increased levels of transparency and accountability;
- Emphasis on indigenisation of manufacture of bank note paper, security inks, security features, related equipments and coin plating.
- Setting up of National Level R&D centre under the proposed Directorate of Currency for R&D in the field of raw materials, security features and machinery required for the production of Indian bank notes and other security sensitive items.
- Security paper manufactured in India to be exempted from Excise duty. Further financial incentives like waiver of the customs duty on imported machinery for the production of the bank note paper and printing to be provided.
- Single national level coordinating agency for intelligence, law enforcement and investigation to tackle the menace of Fake Indian Currency Notes.
- RBI to launch a sustained a widespread multimedia campaign for educating the public to distinguish genuine bank note from the fake ones.
- Modifications in the Procurement Manuals to encourage indigenisation and level playing field.
The Finance Minister appreciated the work done by the Committee and emphasized the early implementation of the recommendations by the Ministry. It may be noted that counterfeiting of currency is a crime that is as old as the introduction of money itself. As it also adversely affects India, a need has arisen to streamline the procedure of acquisition of security features as well as procurement of machinery and raw-materials to combat this menace. Further, indigenisation of items required for production of bank notes also needs to be encouraged to ensure uninterrupted supply of raw materials with cost efficiency as another important measure to contain the problem.
Accordingly the Finance Ministry constituted a Committee to review the matter under the chairmanship of Shri Shilabhadra Banerjee, IAS (Retired), ex-Secretary to Government of India, Chairman of the Committee. Since, the Committee was tasked to complete its work in two months from the date of its constitution; it convened eight meetings at regular intervals and prepared its report within the stipulated time frame. Committee consisted of the following members:- (i) Dr. Thomas Mathews, IAS, Deputy Director General, Institute for Defence Studies and Analyses. (ii) Sh. M.S. Rana, Chairman and Managing Director, Security Printing and Minting Corporation of India Limited (SPMCIL). (iii) Sh.V.K. Sharma, Executive Director, Reserve Bank of India (RBI) (iv) Sh. B.S. Rawat, Deputy Secretary, Department of Economic Affairs, Ministry of Finance. (v) Sh S.C.Agrawal, Managing Director, BRBNMPL. (vi) Sh. Prabodh Kumar, Joint Director and Head of Zone, CBI, New Delhi (vii) Sh. Arvind Kumar, Deputy Director, Intelligence Bureau (IB) (viii) Sh. Sanjeev Kumar Singh, Inspector General, NIA.
