FORENSIC SCIENCE PAPER No. 8: Questioned Document MODULE No.27 : Counterfeiting of Indian Bank Notes
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1 SUBJECT Paper No. and Title Module No. and Title Module Tag FORENSIC SCIENCE PAPER No. 8: Questioned Document MODULE No.27: Counterfeiting of Indian Bank Notes FSC_P8_M27
2 TABLE OF CONTENTS 1. Learning Outcomes 2. Introduction 3. Counterfeiting of Currency 4. Types of Counterfeiting 5. Types of Security Features 6. Security Features in Indian Bank Notes 7. Detection of Counterfeiting 8. Legal Provisions related to Counterfeiting 9. Summary
3 1. Learning Outcomes After studying this module, you shall be able to know about- The meaning of Counterfeiting and its types The Security features incorporated in the contemporary bank notes The legal provisions related to the counterfeiting of bank notes 2. Introduction In India the paper money was introduced in 1770 by the Bank of Hindustan, Calcutta. While the Bank of England introduced currency notes in In India, Printing of currency notes was first started by Government Security Press, Nasik which was established in In 1934 Reserve Bank of India (RBI) took control over it. Presently there are four units related to the manufacturing of Indian Currency Notes, which are: (1) Indian Security Press, Nasik (2) Bank Note Press, Dewas (3) New Bank Note Press, Mysore (4) New Bank Note Press, Salboni (WB) The Security Paper for the manufacture of bank notes is manufactured by Security Paper Mill, Hoshangabad (Madhya Pradesh). The Currency Note Press, Nasik prints bank notes by Wet Offset Process while the Bank Note Press, Dewas prints the same by a sophisticated process known as Intaglio Printing Process. The basic difference between the two processes is that, the former is a Plano Graphic process which leaves no indentations of printing on the paper, whereas in the latter process it also leaves no indentations on the paper, but the inked areas are in respite and can be felt by hand or seen under the microscope. Before proceeding further it is imperative to know the difference between a Bank Note and a Currency Note. Bank notes are those which were issued by the Governor of RBI e.g. Rs. 10, 20, 50, 100, 500 and 1000, while currency notes are those notes that are issued by the Secretary Of Finance, e.g. Rs.1 & 2. The Reserve Bank of India has the sole authority to issue banknotes in India. Reserve Bank, like other central banks over the world, changes the design of banknotes from time to time in order to prevent them from regular counterfeiting.
4 The Reserve Bank has introduced banknotes in the Mahatma Gandhi Series since 1996 and has so far issued notes in the denominations of Rs. 5, Rs. 10, Rs. 20, Rs. 50, Rs. 100, Rs. 500 and Rs in this series. 3. Counterfeiting of Currency Counterfeit currencies are those currencies which are produced and used without a permission of concerned legal authorities. Counterfeiting of currency is as old as the genuine currency is in prevalent in the world. There is no such thing as absolute uniformity in genuine notes. Slight differences are bound to exist between two notes of the same denomination due to the variable materials employed, like printing plates, paper, ink, and above all relaxation of inspection standards due to heavy demand on the currency notes. 4. Types of Counterfeiting Counterfeiting of Currencies is generally done by following known methods: 4.1 Process made forgery: By photographing a genuine note through colour filters, the forgers find it difficult to isolate the colours of multicolour rainbow, which on account of blending and mixing makes difficult to record some portions of the designs on photographic film. The negatives produced are not perfect, giving rise to crude blocks, which produce smudgy impressions. This is widely used method. 4.2 Hand engraved blocks: In this method, forgers manufacture blocks by tracing the design of genuine notes. They, however, are not able to produce the intricate patterns used for printing the rainbow tints. They imitate the pattern by introducing criss- cross lines just to create illusion. The design reproduction is very crude with uneven and broken lines.
5 4.3 Photographic process: In this process a counterfeit note is prepared on a paper, which is photosensitive. This sensitized piece of paper is exposed in contact with negative carrying impressions of obverse and reverse of genuine note obtained by photographing a genuine note. On exposure to light, photographic impressions are obtained on paper and finally they are toned or chemically colored in different shades. 4.4 Lithographic process: Some counterfeiters trace a genuine note on lithographic stone. The delicate patterns of tints, fine lines etc., are, however, difficult to be reproduce by lithographic method. Drawing the figures by hand using water or oil colours reproduces the numbering. 4.5 Hand drawn forgery: Attempts have also been made to forge some notes by drawing the designs of notes directly on piece of paper by hand. An outline of a note is traced by hand with a fine brush using various watercolours to match with the colours of the genuine notes. 5. Types of Security Features 5.1 Overt features: They are also known as public recognition features. These features are recognizable and can be speedily and effortlessly verified in a short time with no need of any equipment. 5.2 Semi - Covert & Covert features: These features are those which cannot be obvious to the public but which are known to verifier and can be easily authenticated. 5.3 Forensic features: About these features only the manufactures knows and which requires the use of special devices to actualize these forensic features.
6 6. Security Features in Indian Bank Notes To ensure that counterfeiting may not happen in a routine manner, Reserve Bank of India has incorporated some security features to differentiate a genuine bank note from the counterfeit one. Before discussing about the security features of a note it seems very important to learn to hold a Bank Note in order to observe the security features easily. The front side is where the denomination is printed is known as the Obverse Side and the vice versa is known as the Reverse Side. It is further to mention that all the security features discussed hereunder are in reference of the Obverse Side. 6.1 Security Paper A bank note is made is made up of 100% pure cotton known as comber. Comber is the residue of cotton from textile mills. This security paper has a crackling sound due to the presence of Titanium Dioxide. It is non-fluorescent under the UV light and has a folding strength of folds. 6.2 Watermark These watermarks are created by using Dandy Rolls during the paper manufacturing process. Commonly, an Indian bank note has four watermarks but there is an additional watermark in the note of 1000 denomination. These watermarks are: Electrolytic Watermark: This is present in the portrait of Mahatma Gandhi. This is the denomination as per the amount of the bank note which can be seen in the left bottom. It is visible in transmitted light Mahatma Gandhi Portrait: This is the watermark of portrait of Mahatma Gandhi in the window of every bank note. It is a three dimensional image and has some shading effect. It does not fluoresce in the Ultra Violet light and seen only in transmitted light RBI Watermark: It is present towards the centre of the bank note or more precisely a little towards left. RBI watermark is present in every bank note vertically across the width. They have equal dimensions and seen through only transmitted light.
7 6.2.4 Secret Denomination: The denomination of bank note is mentioned on the right hand corner at the bottom of the note which can be seen only through transmitted light K Watermark: This watermark is found only in the 1000 denomination bank note. It is situated at the right hand behind the printed portrait of Mahatma Gandhi. 6.3 Security Thread A Security Thread is considered as a layman s identification feature, i.e., it is visible and could be identified by anyone devoid of the knowledge of currency identification. Security thread is yellow fluorescent shifting thread with Clear text of micro printing of RBI and Bharat in Hindi in mirror image. It has Green/ Blue colour spacing. From the obverse side it appears as a Windowed or segmented thread but when observed under the transmitted light it appears continuous. The security thread actually is a Starchrome thread made up of Metal or Plastic which is woven inside the note at the time of manufacturing of the currency paper. 100 and 500 denomination notes give blue fluorescence under UV Light. The 1000 denomination note, however, gives Rainbow colours under UV Light. 6.4 Latent Image The latent image in situated on the right side of the Mahatma Gandhi s portrait. It contains a latent (concealed) image showing the respective denominational value of the currency in numeral. The latent image is visible only when the note is held horizontally at eye level. Micro- lettering This feature appears to the right side of the Mahatma Gandhi Portrait. It consists of printed RBI and the respective denomination of the bank note. However, the numeral denomination printing is absent in 5 and 10 denominations. This feature can be visualized only under magnification.
8 6.5 Intaglio Printing The portrait of Mahatma Gandhi, the Reserve Bank seal, guarantee and promise clause, the Ashoka Pillar Emblem on the left, RBI Governor's signature are printed in Intaglio i.e. in raised prints, which can be felt by touch. They are produced by the reverse etching process. Generally this feature is available in 20, 50, 100, 500 and 1000 denomination. 6.6 Braille mark On the left sides of the notes some symbols appear in Intaglio printing for the visually impaired persons to identify denomination. This feature is in different shapes for various denominations. Denomination Braille Mark 20 Vertical 50 Square 100 Triangle 500 Oval 1000 Diamond 6.7 Fluorescence The Serial Number panels of the notes are usually printed in fluorescent ink which glows under the UV light. 6.8 Optically Variable Ink This is relatively a new security feature incorporated in the 500 and 1000 denomination notes with revised colour scheme. The numeral value visible on the obverse side of the note is printed in optically variable ink viz., a colour-shifting ink. The colour of the numeral appears green when the note is held flat but would change to blue when the note is held at an angle.
9 6.9 See Through Register (STR) This feature is situated on the left obverse side and just opposite to that on the reverse side. When seen from either side it would appear as broken series of illegible fragments. But when observed under the transmitted light, the respective denomination would appear. Earlier, a floral design use to be there which was replaced by the denomination in the contemporary bank notes.
10 6.10 Optical Threads These are the colored viscid fibers mixed in cotton pulp during the manufacturing process of the paper and can be visible or invisible in day lights but fluoresces under U V lights. It fluoresce green, yellow and blue colour and in case of 1000 denomination it is red Omron Features Omron features are also known as the anti- copying features. This is present in the bank note to avoid it form getting photocopied. These are small flower like dots, criss- cross lines and other minute printings which are too minute to be captured by the photocopier machine. 7. Detection of Counterfeiting Generally, the paper is not made of comber but from ordinary paper which fluoresce blue on exposure to Ultra Violet Light. There may be either no watermarks or fewer watermarks with visible defects which is due to lack of tonal similarities. Sometimes, counterfeiting is done by pasting two sheets of paper together and inserting fictitious Security Thread. This technique is however easily detectable as the touch of the note will be unreasonably hard. In the counterfeit notes of low quality counterfeiting the printing is crude or poor. The Ultra Violet inspection would show fluorescence of the fluorescent features. Under magnification the Micro-printings are not seen but instead of that dots and dashes are observed. 8. Legal Provisions related to Counterfeiting Laws related to Counterfeiting of Currency Notes and Bank Notes are discussed in Chapter XVIII of the Indian Penal Code 1860, they are: Section 489A of IPC: Counterfeiting currency-notes or bank-notes Whoever counterfeits, knowingly performs any part of the process of the counterfeiting, any currency note or bank note shall be punished with imprisonment of life or with imprisonment of either description for a term which may extended to ten years, and shall be liable to fine.
11 Section 489B of IPC: Using as genuine, forged or counterfeit currencynotes or bank notes Whoever sells to, or buys or receives from, any other person, or otherwise traffics in or uses as genuine, any forged or counterfeit currency-note or bank-note, knowing or having reason to believe the same to be forged or counterfeit, shall be punished with 152 [imprisonment for life], or with imprisonment of either description for a term which may extend to ten years, and shall also be liable to fine. Section 489C of IPC: Possession of forged or counterfeit currency-notes or bank-notes Whoever has in his possession any forged or counterfeit currency-note or bank-note, knowing or having reason to believe the same to be forged or counterfeit and intending to use the same as genuine or that it may be used as genuine, shall be punished with imprisonment of either description for a term which may extend to seven years, or with fine, or with both. Section 489D of IPC: Making or possessing instruments or materials for forging or counterfeiting currency-notes or bank-notes Whoever makes, or performs, any part of the process of making, or buys or sells or disposes of, or has in his possession, any machinery, instrument or material for the purpose of being. used, or knowing or having reason to believe that it is intended to be used, for forging or counterfeiting any currency-note or bank-note, shall be punished with 152 [imprisonment for life], or with imprisonment of either description for a term which may extend to ten years, and shall also be liable to fine. Section 489E of IPC: Making or using documents resembling currencynotes or bank-notes Whoever makes, or causes to be made, or uses for any purpose whatsoever, or delivers to any person, any document purporting to be, or in any way resembling, or so nearly resembling as to be calculated to deceive any currency-note or bank-note shall be punished with fine which may extend to one hundred rupees.
12 9. Summary Counterfeit currencies are those currencies which are produced and used without a permission of concerned legal authorities. The banknotes of any country generally consists of following basic constituents:- Substrate Printing Inks Applied security features Any security feature to protect banknotes from counterfeiting has to be introduced both in paper and printing Security features can be divided into following categories: Overt Semi- covert Covert Forensic Comber is the residue of cotton from textile mills which is mostly used for manufacture of currency paper. More than 95% α -cellulose is mixed with comber. Sometimes linen is also used along with comber. Indian banknote has 3D, multi- tonal watermarks with dark background having light and dark effect and multi tonal line in watermark window. There are four watermarks in Indian banknote but there is an additional fifth one in 1000 rupee note. On the left sides of the notes there are some symbols in Intaglio printing. This feature is in different shapes for various denominations (Rs. 20- Vertical Rectangle, Rs.50-Square, Rs.100- Triangle, Rs.500- Oval, Rs Diamond) which helps the visually impaired to identify the denomination. Sections 489A to 489E of the Chapter XVIII of the Indian Penal Code 1860 talks about the punishments related to Counterfeiting of Currency and Bank Notes.
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