You're only guilty of a currency offence if you personally printed the fake note.

Knowingly passing on, buying, or using a fake note as genuine is punished just as severely as counterfeiting it in the first place.

Indian Penal Code, 1860

Section 489B

repealed

Using as genuine, forged or counterfeit currency-notes 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 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.§

Why this exists

Counterfeit currency only causes real economic harm once it starts circulating among ordinary people and businesses. This section extends liability beyond the original counterfeiters to everyone in the chain who knowingly buys, sells, or spends fake notes as if they were real, since stopping circulation is just as important as stopping production. The IPC was repealed on 1 July 2024 and replaced by the Bharatiya Nyaya Sanhita, 2023, which now governs these offences.

Common misconceptions

Myth: You're only guilty of a currency offence if you personally printed the fake note.
Fact: Knowingly passing on, buying, or using a fake note as genuine is punished just as severely as counterfeiting it in the first place.