IPC Sections 489A to 489E: Counterfeiting Currency Notes and Bank Notes
Sections 489A, 489B, 489C, 489D and 489E of the Indian Penal Code, 1860 formed a connected group of provisions dealing with counterfeit currency-notes and bank-notes. They addressed counterfeiting itself, trafficking or using forged or counterfeit notes as genuine, possession with the required knowledge and intention, machinery or materials for counterfeiting, and documents resembling currency-notes or bank-notes.
- Section 489A - Counterfeiting currency-notes or bank-notes
- Section 489B - Using as genuine forged or counterfeit currency-notes or bank-notes
- Section 489C - Possession of forged or counterfeit currency-notes or bank-notes
- Section 489D - Machinery, instruments or materials for counterfeiting
- Section 489E - Documents resembling currency-notes or bank-notes
Section 489A IPC: 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.
Explanation: For the purposes of this section and of sections 489B, 489C, 489D and 489E, the expression "bank-note" means a promissory note or engagement for the payment of money to bearer on demand issued by any person carrying on the business of banking in any part of the world, or issued by or under the authority of any State or Sovereign Power, and intended to be used as equivalent to, or as a substitute for money.
What Section 489A Covered
Section 489A applied not only to a person who completed the counterfeiting of a currency-note or bank-note but also to a person who knowingly performed any part of the process of counterfeiting. The statutory explanation also supplied the definition of "bank-note" for Sections 489A to 489E.
Section 489B IPC: Using as Genuine Forged or Counterfeit Currency-Notes or Bank-Notes
Knowledge or Reason to Believe Under Section 489B
The statutory wording makes the mental element important. The conduct covered includes selling, buying, receiving, otherwise trafficking in, or using a forged or counterfeit currency-note or bank-note as genuine, where the person knows or has reason to believe that the note is forged or counterfeit.
Historical note: the source records the 1955 substitution of "imprisonment for life" for "transportation for life", effective 1 January 1956.
Section 489C IPC: Possession of Forged or Counterfeit Currency-Notes or Bank-Notes
Elements Stated in Section 489C
The text of Section 489C combines possession with two further requirements: knowledge or reason to believe that the note is forged or counterfeit, and the specified intention concerning its use as genuine. The provision should therefore be read with all of those statutory elements rather than treating physical possession alone as the complete offence.
Section 489D IPC: Machinery, Instruments or Materials for Forging or Counterfeiting Notes
Purpose, Knowledge or Reason to Believe
Section 489D covered several forms of dealing with machinery, instruments or materials, including making, taking part in making, buying, selling, disposing of and possession. The statutory connection with forging or counterfeiting was supplied by the stated purpose or by knowledge or reason to believe that the item was intended to be so used.
Historical note: the source records the 1955 substitution of "imprisonment for life" for "transportation for life", effective 1 January 1956.
Section 489E IPC: Making or Using Documents Resembling Currency-Notes or Bank-Notes
Sub-section (1): Whoever makes, or causes to be made, or uses for any purpose whatsoever, or delivers to any person, any document purporting to be, or in any way resembling, or so nearly resembling as to be calculated to deceive, any currency-note or bank-note shall be punished with fine which may extend to one hundred rupees.
Sub-section (2): If any person, whose name appears on a document the making of which is an offence under sub-section (1), refuses, without lawful excuse, to disclose to a police-officer on being so required the name and address of the person by whom it was printed or otherwise made, he shall be punished with fine which may extend to two hundred rupees.
Sub-section (3): Where the name of any person appears on any document in respect of which any person is charged with an offence under sub-section (1) or on any other document used or distributed in connection with that document it may, until the contrary is proved, be presumed that that person caused the document to be made.
Scope of Section 489E
Section 489E concerned documents purporting to be, resembling, or so nearly resembling currency-notes or bank-notes as to be calculated to deceive. It also imposed a separate fine for the refusal described in sub-section (2), and sub-section (3) contained the stated rebuttable presumption where a person's name appeared on the relevant document or a connected document.
Historical note: the source records that Section 489E was inserted by Act 6 of 1943, section 2.
Punishment Under Sections 489A to 489E IPC
| Section | Conduct | Punishment stated in the provision |
|---|---|---|
| 489A | Counterfeiting or knowingly performing part of the counterfeiting process | Imprisonment for life, or imprisonment of either description up to 10 years, and fine |
| 489B | Specified dealing in or use as genuine of forged or counterfeit notes with the required knowledge or reason to believe | Imprisonment for life, or imprisonment of either description up to 10 years, and fine |
| 489C | Possession with the required knowledge or reason to believe and intention regarding use as genuine | Imprisonment of either description up to 7 years, or fine, or both |
| 489D | Specified dealing with machinery, instruments or materials for forging or counterfeiting notes | Imprisonment for life, or imprisonment of either description up to 10 years, and fine |
| 489E(1) | Making, causing to be made, using or delivering the described resembling document | Fine up to Rs. 100 |
| 489E(2) | Refusal without lawful excuse to disclose the printer or maker information in the circumstances stated | Fine up to Rs. 200 |
Difference Between Sections 489A, 489B, 489C and 489D
These provisions addressed different stages or forms of conduct. Section 489A dealt with counterfeiting and participation in the counterfeiting process. Section 489B dealt with specified transactions, trafficking and use as genuine. Section 489C dealt with possession coupled with the statutory knowledge or reason to believe and intention. Section 489D dealt with machinery, instruments or materials connected with forging or counterfeiting.
Related IPC Forgery Provisions
For the wider IPC framework on documents and forgery, see Sections 463, 464 and 465 IPC - forgery, making a false document and punishment for forgery, Sections 466 to 469 IPC - specified forms of forgery, and Sections 470 to 474 IPC - forged documents, use as genuine and counterfeit seals or related possession.
Legal information: This article explains the historical IPC provisions for general information. The law applicable to particular conduct should be determined with reference to the relevant date, facts and statutory saving provisions.