Section 489A IPC: Counterfeiting currency-notes or bank-notes
Indian Penal Code, 1860
Section 489A IPC at a Glance
Section 489A IPC deals with counterfeiting currency-notes or bank-notes. It is non-bailable and cognizable, triable by the Court of Session; from 1 July 2024 it is replaced by Section 178 BNS.
Imprisonment for life, or imprisonment of either description for a term which may extend to ten years.
Section 489A IPC Bare Act Text
489A. 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.
ExplanationFor 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.
Source: Section 489A, Indian Penal Code, 1860
Section 489A IPC in Simple Words
Section 489A of the Indian Penal Code (IPC) punishes counterfeiting, or knowingly performing any part of the process of counterfeiting, any currency-note or bank-note. Counterfeiting means causing one thing to resemble another intending to practise deception or knowing deception is likely, as defined in Section 28 IPC.
The punishment is imprisonment for life, or imprisonment of either description for a term which may extend to ten years, and the offender is also liable to fine. The Explanation defines bank-note for Section 489A IPC through Section 489E IPC.
The offence is cognizable and non-bailable, triable by a Court of Session, and not compoundable under Section 320 CrPC.
Ingredients of Section 489A IPC
- The document counterfeited is a currency-note or a bank-note
- The accused counterfeits the note, or knowingly performs any part of the process of counterfeiting it
- The accused causes the resemblance intending by means of it to practise deception, or knowing it to be likely that deception will thereby be practised
Punishment Under Section 489A IPC
Imprisonment for life, or imprisonment of either description for a term which may extend to ten years.
The offender is also liable to fine. The statute does not prescribe a mandatory fine or fix a maximum amount.
Counterfeiting currency-notes or bank-notes carries imprisonment for life, or imprisonment of either description for up to ten years, and the offender is also liable to fine.
Example of Section 489A IPC
When Section 489A IPC Does Not Apply
- The item produced does not imitate a currency-note or a bank-note.
- A worker carried out a mechanical task without knowing that it was part of a process for counterfeiting currency-notes or bank-notes.
- The imitation was made without any intention to practise deception and without knowledge that deception was likely to be practised.
- The accused merely possessed or circulated a counterfeit note already made by someone else without participating in its creation.
Section 489A IPC in the BNS
Section 489A IPC is now covered under Section 178 BNS.
Section 489A IPC corresponds to Section 178 BNS. Section 178 BNS consolidates counterfeiting of currency-notes and bank-notes with coin and Government revenue stamps, which were separate offences under the IPC. The punishment for counterfeiting currency-notes is unchanged, and the definition of bank-note now applies to the entire Chapter.
View detailed comparison (IPC 489A vs BNS 178) →FAQs on Section 489A IPC
What does Section 489A IPC punish?▼
Section 489A IPC punishes counterfeiting, or knowingly performing any part of the process of counterfeiting, any currency-note or bank-note.
What is the punishment prescribed under Section 489A IPC?▼
The court may award imprisonment for life, or imprisonment of either description for a term which may extend to ten years, and the offender is also liable to fine.
Does Section 489A IPC punish a person who only performs a single step in printing?▼
Yes. Whoever knowingly performs any part of the process of counterfeiting is punishable under Section 489A IPC.
Under Section 489A IPC, must the imitation be exact to constitute counterfeiting?▼
No. Explanation 1 to Section 28 IPC states that it is not essential to counterfeiting that the imitation should be exact.
What is a bank-note under Section 489A IPC?▼
The Explanation defines a bank-note as 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 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.
Is Section 489A IPC bailable and cognizable?▼
Section 489A IPC is cognizable and non-bailable under the First Schedule to the Code of Criminal Procedure, 1973.
Which court tries an offence under Section 489A IPC?▼
The offence is triable by a Court of Session.
Can an offence under Section 489A IPC be compounded?▼
No. Section 489A IPC is not listed in Section 320 CrPC and cannot be compounded.
Where is Section 489A IPC placed in the Bharatiya Nyaya Sanhita?▼
It is placed in Section 178 BNS, in Chapter X, Of Offences Relating to Coin, Currency-Notes, Bank-Notes and Government Stamps.
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Sources: Bare Act Text, Indian Penal Code, 1860 · Last updated: 16 Oct 2026 ·