Section 243 IPC: Possession of Indian coin by person who knew it to be counterfeit when he became possessed thereof

Indian Penal Code, 1860

Section 243 IPC at a Glance

Section 243 IPC deals with possession of Indian coin by person who knew it to be counterfeit when he became possessed thereof. It is non-bailable and cognizable, triable by Magistrate of the first class; from 1 July 2024 it is replaced by Section 180 BNS.

Punishment

Imprisonment of either description for a term which may extend to seven years.

Non-Bailable ⓘCognizable ⓘNon-Compoundable ⓘ🏛️ Magistrate of the first class ⓘ
BNS Equivalent

Section 180 →

Section 243 IPC Bare Act Text

243. Possession of Indian coin by person who knew it to be counterfeit when he became possessed thereof

Whoever, fraudulently or with intent that fraud may be committed, is in possession of counterfeit coin, which is a counterfeit of Indian coin, having known at the time when he became possessed of it that it was counterfeit, shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.

Source: Section 243, Indian Penal Code, 1860

Section 243 IPC in Simple Words

Section 243 of the Indian Penal Code (IPC) punishes possession of counterfeit Indian coin where the person knew the coin was counterfeit at the time of becoming possessed of it, and holds possession fraudulently or with intent that fraud may be committed.

The punishment is imprisonment of either description for up to seven years, and fine.

Under the First Schedule to the Code of Criminal Procedure, the offence is cognizable, non-bailable, and triable by a Magistrate of the first class.

Ingredients of Section 243 IPC

  • Being in possession of counterfeit coin
  • The coin is a counterfeit of Indian coin as defined in Section 230 IPC
  • Knowing at the time when he became possessed of it that it was counterfeit
  • Holding such possession fraudulently or with intent that fraud may be committed

Punishment Under Section 243 IPC

Imprisonment

Imprisonment of either description for a term which may extend to seven years.

Fine

The offender shall also be liable to fine.

Non-Bailable ⓘCognizable ⓘNon-Compoundable ⓘ🏛️ Magistrate of the first class ⓘ

Possessing counterfeit Indian coin known to be counterfeit when it was obtained is punishable with imprisonment of either description for up to seven years, and the offender is also liable to fine.

Example of Section 243 IPC

In 2021, Harish, a bus conductor in Ranchi, accepted forty counterfeit Indian ten-rupee coins from a racketeer at half their face value, knowing at the time he became possessed of them that they were counterfeits of Indian coin. Harish stored the fake Indian coins in his leather satchel with the intention that fraud would be committed by handing them out to passengers during night journeys. Because he possessed counterfeit Indian coins with intent to commit fraud, having known they were counterfeit when he obtained them, Harish is punishable under Section 243 IPC.

When Section 243 IPC Does Not Apply

  • Section 243 IPC does not apply when the counterfeit coin in the person's possession is an imitation of a foreign coin rather than Indian coin.
  • Section 243 IPC does not apply if the person did not know that the Indian coin was counterfeit at the moment he first took possession of it.
  • Section 243 IPC does not apply where the accused is not in possession of the counterfeit Indian coin.
  • Section 243 IPC does not apply when the counterfeit Indian coin is held without any fraudulent conduct and without any intention that fraud be committed.

Section 243 IPC in the BNS

Section 243 IPC is now covered under Section 180 BNS.

Section 243 IPC is consolidated into Section 180 BNS, which removes the separate category of Indian coin, merging possession of fake coin, Government stamps, currency-notes, and bank-notes into a single offence. Section 180 BNS replaces the requirement of knowledge at the time of initial possession with an intent to use the item as genuine, which also takes the place of possession held fraudulently or with intent that fraud may be committed. Section 180 BNS adds an Explanation that possession from a lawful source does not constitute an offence. The maximum imprisonment remains seven years, but Section 180 BNS allows fine alone, in place of imprisonment, where Section 243 IPC required imprisonment.

View detailed comparison (IPC 243 vs BNS 180) →

FAQs on Section 243 IPC

What does Section 243 IPC punish?▼

It punishes fraudulently possessing counterfeit Indian coin, having known at the time of becoming possessed of it that the coin was counterfeit.

What is the punishment under Section 243 IPC?▼

Imprisonment of either description for a term which may extend to seven years, and fine.

How did Section 243 IPC differ from Section 242 IPC?▼

Section 242 IPC applied to any counterfeit coin and carried imprisonment for up to three years, whereas Section 243 IPC applied specifically to Indian coin and carried imprisonment for up to seven years.

Is Section 243 IPC bailable?▼

No. The offence is non-bailable and cognizable under the First Schedule to the Code of Criminal Procedure.

Which court tries an offence under Section 243 IPC?▼

It is triable by a Magistrate of the first class.

Can an offence under Section 243 IPC be compounded?▼

No. Section 243 IPC is not compoundable under Section 320 CrPC.

Where is Section 243 IPC placed in the Bharatiya Nyaya Sanhita?▼

It is consolidated into Section 180 BNS, which eliminates the separate classification of Indian coin.

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

Sources: Bare Act Text, Indian Penal Code, 1860 · Last updated: 16 Oct 2026 ·