Only someone who prints large quantities of fake currency, or completes the whole process alone, can be punished under this section.

Knowingly performing even just part of the counterfeiting process -- like sourcing special paper or printing -- is enough, regardless of the scale of the operation.

Indian Penal Code, 1860

Section 489A

repealed

Counterfeiting currency-notes or bank-notes

Whoever counterfeits, or knowingly performs any part of the process of counterfeiting, any 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.§

Why this exists

This section was added to the Indian Penal Code in 1899, once paper currency notes became common, to specifically address counterfeiting them (earlier IPC provisions dealt mainly with counterfeiting coins). Fake currency threatens the entire economy and public trust in money itself, so counterfeiting notes is one of the most severely punished offences in the Code, on par with the most serious crimes. The IPC was repealed on 1 July 2024 and replaced by the Bharatiya Nyaya Sanhita, 2023, which now governs these offences.

Common misconceptions

Myth: Only someone who prints large quantities of fake currency, or completes the whole process alone, can be punished under this section.
Fact: Knowingly performing even just part of the counterfeiting process -- like sourcing special paper or printing -- is enough, regardless of the scale of the operation.