Press Information Bureau

Government of India

Ministry of Finance

22-May-2012 19:29 IST

Major recommendations made by the Shilabhadra Benerjee Committee are regarding setting-up of a Directorate of Currency; eight stage process for acquisition of security features for India bank notes; review of Procurement Manuals of BRBNMPL and SPMCIL; and Indigenization including R&D set up in the country.

The action taken so far includes setting- up of Directorate of Currency in the Ministry of Finance under the charge of Additional Secretary & Director General; initiation of the acquisition process following eight-stage process recommended by the Banerjee Committee; revision of Procurement Manuals by SPMCIL and BRBNMPL. In addition, several initiatives/steps for augmenting the indigenous capacity of various products like banknote paper and security ink etc., in the country have been taken. Action has also been initiated to install three new banknote paper production lines in the country. Similarly, modernization and augmentation of the Ink Factory at Dewas has also been taken-up.

A nodal group namely FCORD (FICN Coordination Cell) has also been set- up to coordinate/share available information/intelligence and analysis on circulation/smuggling of FICN in the world.

The review of demand and supply of currency notes is a continuous and dynamic process undertaken in coordination with relevant stakeholders including RBI and various security agencies.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in Rajya Sabha today.

DSM/Hb

Directorate of Currency established to oversee currency security, procurement reforms and indigenization of banknote production capacity. A Directorate of Currency has been created in the Ministry of Finance to coordinate currency policy and operations; an eight-stage acquisition process for banknote security features has been initiated and procurement manuals of BRBNMPL and SPMCIL revised. Measures to indigenize banknote paper and security ink production-including new paper production lines and modernization of the Dewas Ink Factory-have been taken. A nodal FCORD cell was set up for intelligence sharing on forged/counterfeit currency, and demand-supply review continues in coordination with the Reserve Bank and security agencies.