Expects the move will help put an end to smuggling of fake Indian currency using Nepali territory Kathmandu, November 9 The Indian government’s decision to withdraw from circulation 500 and 1000 rupee banknotes as part of ‘crackdown on rampant corruption and counterfeit currency’ is expected to put an end to smuggling of fake Indian currency notes to the southern neighbour using Nepali soil. The surge in smuggling of fake Indian bank notes to India via Nepal-India porous border has long been one of the key issues of concern among security agencies of the two countries. Despite crackdowns, the ever changing modus operandi of counterfeit currency racketeers continued to leave Nepal Police baffled. Recently, police nabbed 13 persons with fake Indian banknotes worth 15.5 million in two separate operations in April and May. Nepali security officials have managed to seize fake Indian banknotes with the face value of over 150 million throughout the country, mainly from Tribhuvan International Airport and different places of Kathmandu, in the past seven years. People of various nationalities including Pakistanis, Indians, Nepalis, Vietnamese, Filipinos, Chinese, Bangladeshis and Sri Lankans have been arrested for smuggling fake banknotes. More than five times the seized amount is believed to have been smuggled to India via Nepal. The Indian currency notes in denomination of 500 and 1000 were machine-printed and ordinary people could hardly distinguish between genuine and fake notes. Though counterfeit Indian banknotes were rarely circulated in Nepali market due ban on circulation Indian banknotes of 500 and 1000 denomination, police suspect racketeers could have used Indian nationals working in the country to dispose of fake currency notes. “All of the trade and transfer of Indian currency were taking place in high denomination notes like 500 and 100,” said a senior official at Nepal Police. “The Indian government’s move to illegalise their tender will definitely deal a big blow to racketeer working in many layers abroad as they might have Indian fake banknotes worth billions in stock. This should also come as a huge relief to us,” said the senior official at Nepal Police. As many as 250 out of every one million notes in circulation are fake, according to a study conducted by the Indian Statistical Institute. Typically, at any point in time, banknotes with a face value of Rs 400 crore are in circulation in the country. The study revealed that fake currency notes with a face value of Rs 70 crore are infused into the system every year, and law enforcement agencies are able to intercept only a third of them a fact that is acknowledged by the agencies themselves. According to Indian authorities, Pakistan’s military spy agency, the Inter-Services Intelligence, has been raking in an annual profit of around IRs 500 crore by circulating counterfeit notes in India. Indian security agencies maintain that the major points for pushing fake currency continue to be the border states of Jammu and Kashmir, Punjab, UP, Bihar and West Bengal. Bogus money is routed through these states from Pakistan, Nepal, Bangladesh and Dubai, with Pakistan being the main source.