Indian Penal Code, 1860
Section 489C
repealedPossession of forged or counterfeit currency-notes or bank-notes
Whoever has in his possession any forged or counterfeit currency-note or bank-note, knowing or having reason to believe the same to be forged or counterfeit and intending to use the same as genuine or that it may be used as genuine, shall be punished with imprisonment of either description for a term which may extend to seven years, or with fine, or with both.
Why this exists
This section allows the law to act on people caught holding fake currency before they actually manage to spend or circulate it, similar to how section 474 punishes possession of forged documents before use. It closes the gap between counterfeiting and actual circulation. The IPC was repealed on 1 July 2024 and replaced by the Bharatiya Nyaya Sanhita, 2023, which now governs these offences.