ISI lures travellers with fake currency
Nandini R Iyer
New Delhi, November 11

Concerned about the drastic improvements in the quality of fake currency notes in circulation, Indian missions abroad may soon begin cautioning visa applicants to avoid buying Indian currency locally. Fake notes worth about Rs 1,000 crore are believed to be already in circulation.

The home ministry recently alerted the MEA to the possibility that in addition to middlemen, the ISI may be offering such currency at a lower exchange rate to travellers.

"There have been several cases detected in the recent past where innocent but very rich people (especially Arab Sheikhs) have been duped into purchasing fake notes," said a senior Home Ministry official. "They buy them because they're getting them at a much lower rate of exchange."

There are various aspects to the problem. For one, intelligence agencies have been unable to pinpoint what Pakistan has done with the 4 kg of "green to blue (colour shift)" Optically Variable Ink a patented product of a Swiss manufacturer ostensibly for a security feature in its passports. This is the same ink India uses for currency notes of the Rs 500 denomination. One kg of ink can produce 32 lakh notes.

Intelligence agencies have informed the government that militants are offered a choice between being paid Rs 5,000 in Pakistani rupees or Rs 1 lakh worth of counterfeit money.

Intelligence agencies have also recommended surveillance and updated security verifications of all employees associated with the process of producing currency.

Alarming notes

Home Ministry suspects ISI may be offering fake notes at lower exchange rate to travellers

Pakistan has got 4 kg of a Swiss ink that India uses for Rs 500 notes. Pakistan says the ink is for use in passports

Absolute reproduction of watermarks in fake notes requires an infrastructure which only a state can provide, say officials