Section 181 BNS: Making or possessing instruments or materials for forging or counterfeiting coin, Government stamp, currency-notes or bank-notes

Bharatiya Nyaya Sanhita, 2023

Section 181 BNS at a Glance

Section 181 BNS deals with making or possessing instruments or materials for forging or counterfeiting coin, Government stamp, currency-notes or bank-notes. It is non-bailable and cognizable, triable by Magistrate of the first class; it replaced Section 233 IPC on 1 July 2024.

Punishment

Imprisonment of either description for up to three years under Section 233 IPC. Section 181 BNS provides imprisonment for life, or imprisonment of either description for up to ten years.

Non-Bailable โ“˜Cognizable โ“˜Non-Compoundable โ“˜๐Ÿ›๏ธ Magistrate of the first class โ“˜
IPC Equivalent

Section 233 โ†’

Section 181 BNS Bare Act Text

181. Making or selling instrument for counterfeiting coin

Whoever makes or mends, or performs any part of the process of making or mending, or buys or sells or disposes of, or has in his possession, any machinery, die, or instrument or material for the purpose of being used, or knowing or having reason to believe that it is intended to be used, for forging or counterfeiting any coin, stamp issued by Government for the purpose of revenue, 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.

Source: Section 181, Bharatiya Nyaya Sanhita, 2023

Section 181 BNS in Simple Words

Section 181 BNS of the Bharatiya Nyaya Sanhita (BNS) deals with making, possessing, or dealing with tools, instruments, or materials meant for forging or counterfeiting coin, government stamps, currency notes, or bank notes. The law does not wait for the fake currency or forged stamp to be actually made. If a person knowingly prepares or keeps the equipment for that purpose, liability can arise.

This section usually applies where the prosecution can show a dishonest or fraudulent intention linked to the instruments or materials in question. It is aimed at stopping counterfeiting at an early stage. In practical terms, this helps police act before fake currency or forged government instruments enter circulation.

For a client, the key issue is often whether the items were ordinary household or business articles, or whether they were specifically kept for illegal use. The surrounding facts matter a great deal.

Ingredients of Section 181 BNS

  • Making, mending, performing any part of the process of making or mending, buying, selling, disposing of, or having in possession
  • Any machinery, die, instrument, or material
  • Purpose of being used, or knowing or having reason to believe that it is intended to be used, for forging or counterfeiting any coin, Government stamp, currency-note, or bank-note
  • Punishment of imprisonment for life, or imprisonment of either description for up to ten years, and liability to fine

Punishment Under Section 181 BNS

Imprisonment

Imprisonment of either description for up to three years under Section 233 IPC. Section 181 BNS provides imprisonment for life, or imprisonment of either description for up to ten years.

Fine

Liable to fine under Section 233 IPC, and also liable to fine under Section 181 BNS.

Non-Bailable โ“˜Cognizable โ“˜Non-Compoundable โ“˜๐Ÿ›๏ธ Magistrate of the first class โ“˜

Section 233 IPC carries imprisonment for up to three years and liability to fine. Section 181 BNS significantly increases the maximum term to imprisonment for life, or imprisonment for up to ten years, and liability to fine.

Example of Section 181 BNS

A toolmaker in Moradabad shapes and engraves a hardened steel die designed to strike counterfeit five-rupee coins, knowing that the purchaser intends to use it for counterfeiting coin. Under Section 181 BNS, the toolmaker is liable for making the die knowing it is intended to be used for counterfeiting coin.

When Section 181 BNS Does Not Apply

  • The article involved is not machinery, a die, an instrument, or material
  • The person did not make, mend, perform any part of the process of making or mending, buy, sell, dispose of, or possess the item
  • The act or possession was without the purpose of being used, and without knowledge or reason to believe that the item was intended to be used, for forging or counterfeiting any coin, Government revenue stamp, currency-note, or bank-note

Section 181 BNS in the IPC (Previous Law)

Section 181 BNS replaces Section 233 IPC from the old criminal code.

Section 233 IPC is merged into Section 181 BNS, which consolidates making, mending, buying, selling, disposing of, or possessing machinery, dies, instruments, or materials for forging or counterfeiting coin, Government stamps, currency-notes, and bank-notes. Section 181 BNS adds possession, machinery, and materials to the text. The maximum imprisonment increases substantially from three years under Section 233 IPC to imprisonment for life, or imprisonment for up to ten years, under Section 181 BNS, and fine.

View IPC Section 233 โ†’

FAQs on Section 181 BNS

Do police need to catch the person making fake currency to apply Section 181 BNS?โ–ผ

No. The section can apply even before the fake notes or forged stamps are actually made. Possessing the tools or materials with the required illegal intent is enough.

Under Section 181 BNS, what if the items seized are ordinary tools?โ–ผ

Ordinary tools alone are not enough. The prosecution must show that they were made, kept, or used for forging or counterfeiting purposes, along with the necessary knowledge or intention.

Is Section 181 BNS a bailable offence?โ–ผ

No, it is generally treated as a non-bailable offence. It is also cognizable, so police can investigate and arrest in accordance with law.

How is Section 181 BNS different from actual counterfeiting offences?โ–ผ

This section deals with preparation and possession of tools or materials. Other sections deal with the actual making, selling, or using of counterfeit currency or forged instruments.

Have questions about Section 181 BNS?

Ask NyayGuru for a plain language explanation, punishment details, or how it applies to your situation.

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Disclaimer: This is for informational purposes only. Always consult a qualified advocate for legal advice.

Sources: Bare Act Text, Bharatiya Nyaya Sanhita, 2023 ยท Last updated: 16 Oct 2026 ยท