The Union Finance Minister, Mr Pranab Mukherjee, on Saturday said that India has started producing paper required for currency production and would also start manufacturing ink.
This would help the country overcome the problem of counterfeit or fake currency to a great extent.
Attributing the rise in fake currency problem to imports of paper and ink, Mr Mukherjee said that the indigenous production had helped curtail the issue.
“The problem of fake currency had gone up in the last few years but we had taken aggressive measures and have been able to overcome the problem,” Mr Mukherjee said at the diamond jubilee celebration of India Government Mint, Kolkata, here on Saturday.
“The paper and ink were mainly being imported from two countries. However, now we have been able to manufacture paper in two of our factories in Mysore (Karnataka) and Husnabad (Andhra Pradesh). This has helped address the issue of fake currency notes production,” Mr Mukherjee said.
Coin production
The Reserve Bank of India has set up an expert committee to suggest recommendations to enhance coin production.
The country produces about 6.2 billion coins and there is a proposal to double it over the next few years. “RBI has set up an expert committee to suggest recommendations on how to double the coin production,” Mr Mukherjee said.
The West Bengal Finance Minister, Mr Amit Mitra, said that the State's share in coin production should also increase.
“The Mint in the State currently produces about 1.6 billion coins, we should strive to double it to 3.2 billion,” he said.