Section 489B IPC: Using as genuine, forged or counterfeit currency-notes or bank-notes
Indian Penal Code, 1860
Section 489B IPC at a Glance
Section 489B IPC deals with using as genuine, forged or counterfeit 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 179 BNS.
Imprisonment for life, or imprisonment of either description for a term which may extend to ten years.
Section 489B IPC Bare Act Text
489B. Using as genuine, forged or counterfeit currency-notes or bank-notes
Whoever sells to, or buys or receives from, any other person, or otherwise traffics in or uses as genuine, any forged or counterfeit currency-note or bank-note, knowing or having reason to believe the same to be forged or counterfeit, 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 489B, Indian Penal Code, 1860
Section 489B IPC in Simple Words
Section 489B of the Indian Penal Code (IPC) punishes whoever sells to, buys or receives from any other person, or otherwise traffics in or uses as genuine, any forged or counterfeit currency-note or bank-note, knowing or having reason to believe the same to be forged or counterfeit. Under Section 26 IPC, a person has reason to believe a thing if he has sufficient cause to believe that thing.
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 offence is cognizable and non-bailable, triable by a Court of Session, and not compoundable under Section 320 CrPC.
Ingredients of Section 489B IPC
- The currency-note or bank-note was forged or counterfeit
- The accused sold it to, bought or received it from another person, or otherwise trafficked in it or used it as genuine
- The accused knew or had reason to believe that the note was forged or counterfeit
Punishment Under Section 489B 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.
Selling, buying, receiving, trafficking in, or using as genuine forged or counterfeit 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 489B IPC
When Section 489B IPC Does Not Apply
- The currency-note or bank-note that was bought, sold, received, or used was authentic.
- The person who received or tendered the counterfeit note neither knew nor had reason to believe that it was forged or counterfeit.
- The accused only held the counterfeit note in his custody without buying, selling, receiving, trafficking in, or using it as genuine.
Section 489B IPC in the BNS
Section 489B IPC is now covered under Section 179 BNS.
Section 489B IPC corresponds to Section 179 BNS. Section 179 BNS expands the offence to cover importing, exporting, and delivering, and includes coin and Government stamps alongside currency-notes and bank-notes. The punishment remains unchanged at imprisonment for life or up to ten years and liability to fine.
View detailed comparison (IPC 489B vs BNS 179) →FAQs on Section 489B IPC
What does Section 489B IPC punish?▼
Section 489B IPC punishes selling, buying, receiving, trafficking in, or using as genuine any forged or counterfeit currency-note or bank-note, knowing or having reason to believe it to be forged or counterfeit.
What is the punishment prescribed under Section 489B 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.
Under Section 489B IPC, is receiving a counterfeit note from another person punishable without passing it on?▼
Yes. Receiving a counterfeit note from another person knowing or having reason to believe it to be counterfeit completes the offence under Section 489B IPC.
Under Section 489B IPC, what if a person receives a counterfeit note innocently without knowing it is counterfeit?▼
The person commits no offence under Section 489B IPC, because the section requires knowledge or reason to believe that the note is forged or counterfeit.
Under Section 489B IPC, what constitutes reason to believe under the IPC?▼
Under Section 26 IPC, a person is said to have reason to believe a thing if he has sufficient cause to believe that thing, but not otherwise.
Is Section 489B IPC bailable and cognizable?▼
Section 489B IPC is cognizable and non-bailable under the First Schedule to the Code of Criminal Procedure, 1973.
Which court tries an offence under Section 489B IPC?▼
The offence is triable by a Court of Session.
Can an offence under Section 489B IPC be compounded?▼
No. Section 489B IPC is not listed in Section 320 CrPC and cannot be compounded.
Where is Section 489B IPC placed in the Bharatiya Nyaya Sanhita?▼
It is placed in Section 179 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 ·