Bharatiya Nyaya Sanhita, 2023
Section 178
Counterfeiting coin, Government stamps, currency-notes or bank-notes
Whoever counterfeits, or knowingly performs any part of the process of counterfeiting, any coin, stamp issued by Government for the purpose of revenue, currency-note or bank-note, shall be punished with 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. Explanation.—For the purposes of this Chapter,—
(1) the expression “bank-note” means a promissory note or engagement for the payment of money to bearer on demand issued by any person carrying on the business of banking in any part of the world, or issued by or under the authority of any State or Sovereign Power, and intended to be used as equivalent to, or as a substitute for money;
(2) “coin” shall have the same meaning as assigned to it in section 2 of the Coinage Act, 2011
(11 of 2011) and includes metal used for the time being as money and is stamped and issued by or under the authority of any State or Sovereign Power intended to be so used;
(3) a person commits the offence of “counterfeiting Government stamp” who counterfeits by causing a genuine stamp of one denomination to appear like a genuine stamp of a different denomination;
(4) a person commits the offence of counterfeiting coin who intending to practise deception, or knowing it to be likely that deception will thereby be practised, causes a genuine coin to appear like a different coin; and
(5) the offence of “counterfeiting coin” includes diminishing the weight or alteration of the composition, or alteration of the appearance of the coin.
Why this exists
Currency and government stamps only work as a system of trust — people accept them because they believe they're genuine and backed by the state. Counterfeiting undermines this trust, damages the economy, and can fund crime. Indian law has long criminalized this (originally under the Indian Penal Code, 1860, sections 230-254), and the Bharatiya Nyaya Sanhita, 2023 carries forward this protection, updating references like linking 'coin' to the modern Coinage Act, 2011.
How courts read it
Under the predecessor IPC provisions, courts held that the offence is complete even if only part of the counterfeiting process is done knowingly — full completion of a fake note or coin isn't required. Courts have also clarified that intent or knowledge of likely deception is central to 'counterfeiting a coin,' and that even altering appearance or composition (without creating a whole new fake) can amount to counterfeiting.
Common misconceptions
- Myth: Only the person who fully creates the fake note or coin can be punished.
Fact: The law also punishes anyone who knowingly performs even a part of the counterfeiting process, like preparing plates or materials. - Myth: Counterfeiting a coin only means making a completely new fake coin from scratch.
Fact: It also includes altering a real coin's weight, composition, or appearance to deceive people.