The Indian Kattalio Game: mapping the counterfeit currency network in India

Balasubramaniyan Viswanathan

Journal of Financial Crime, 2016, vol. 23, issue 3, 542-558

Abstract: Purpose - The purpose of this paper is to study the counterfeit currency network in India. This research is an endeavour to bring out various layers which act as source, collection and distribution points in a counterfeit currency network in India. This paper also deals with the fake currency network and its linkages to terrorism. Design/methodology/approach - Methodology adopted is a descriptive one which conducts a content analysis on materials derived from secondary sources supported by information from primary source data acquired through the Right to Information Act. Findings - This paper argues that the existing measure of calculating the incidence of counterfeit notes per million is understated by the relevant stakeholders in India. This measure changes drastically when other factors such as high denomination notes and police seizures are taken into account, which has not been attempted, though it is duly acknowledged by the stakeholders. This paper has attempted to map the locations in India which act as ingress, distribution and circulation points based on evidentiary data derived from the seizure records. This paper also highlights the fact that criminal gang-operated networks of fake currency are compartmentalised, while the networks operated by terror groups are de-compartmentalised. Practical implications - In the process, this paper attempts to enlighten stakeholders like law enforcement agencies, banking regulators and counter terrorism community on the penetration levels of the fake Indian currency note (FICN) networks in India and the need to target these important nodes or points or layers to break up the FICN network. This also highlights fund-raising mechanisms of terror groups, where FICN acts as the main funding resource for groups like the Indian Mujahideen for carrying out low-cost terror attacks. Originality/value - The key findings of this research lie in its originality of presentation of facts in a systematic fashion.

Keywords: Counterfeit currency network in India; FICN network; Financing of terrorism in India (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jfcpps:jfc-07-2014-0036

DOI: 10.1108/JFC-07-2014-0036

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