Section 489C IPC: Possession of forged or counterfeit currency-notes or bank-notes

Indian Penal Code, 1860

Section 489C IPC at a Glance

Section 489C IPC deals with possession of forged or counterfeit currency-notes or bank-notes. It is bailable and cognizable, triable by the Court of Session; 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.

Bailable ⓘCognizable ⓘNon-Compoundable ⓘ🏛️ Court of Session ⓘ
BNS Equivalent

Section 180 →

Section 489C IPC Bare Act Text

489C. Possession of forged or counterfeit currency-notes or bank-notes

Whoever has in his possession any forged or counterfeit currency-note or bank-note, knowing or having reason to believe the same to be forged or counterfeit and intending to use the same as genuine or that it may be used as genuine, shall be punished with imprisonment of either description for a term which may extend to seven years, or with fine, or with both.

Source: Section 489C, Indian Penal Code, 1860

Section 489C IPC in Simple Words

Section 489C of the Indian Penal Code (IPC) punishes having in possession any forged or counterfeit currency-note or bank-note, knowing or having reason to believe the same to be forged or counterfeit, and intending to use the same as genuine or that it may be used as genuine. Possession alone is not sufficient; the accused must know or have reason to believe that the note is counterfeit and must possess the intention that it be used as genuine.

The punishment is imprisonment of either description for a term which may extend to seven years, or fine, or both. The offence is cognizable and bailable, triable by a Court of Session, and not compoundable under Section 320 CrPC.

Ingredients of Section 489C IPC

  • The accused had in his possession a forged or counterfeit currency-note or bank-note
  • The accused knew or had reason to believe that the note was forged or counterfeit
  • The accused intended to use the note as genuine or that it may be used as genuine

Punishment Under Section 489C IPC

Imprisonment

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

Fine

The court may impose a fine alone, or fine in addition to imprisonment. The statute specifies no upper limit.

Bailable ⓘCognizable ⓘNon-Compoundable ⓘ🏛️ Court of Session ⓘ

Possession of forged or counterfeit currency-notes or bank-notes, with knowledge and intent to use as genuine, carries imprisonment of either description for up to seven years, or fine, or both.

Example of Section 489C IPC

In 2016 at a lodge in Madurai, police searched a locked trunk belonging to Pradeep and found thirty forged one thousand rupee currency-notes hidden inside a cloth pouch. Pradeep knew that the notes were forged and had brought them to Madurai intending to spend them as genuine currency at local silk stores. Pradeep had forged currency-notes in his possession, knew them to be forged, and intended to use them as genuine. Pradeep is punishable under Section 489C IPC.

When Section 489C IPC Does Not Apply

  • The currency-note or bank-note found in the person's custody is genuine.
  • The person possessing the forged or counterfeit note neither knew nor had reason to believe that it was fake.
  • The person kept the counterfeit note only to surrender it to the authorities or as a specimen, with no intention that it be used as genuine.

Section 489C IPC in the BNS

Section 489C IPC is now covered under Section 180 BNS.

Section 489C IPC corresponds to Section 180 BNS. Section 180 BNS extends coverage to coin and Government stamps alongside currency-notes and bank-notes, and adds an Explanation that establishing possession from a lawful source is not an offence under the section. The punishment is unchanged.

View detailed comparison (IPC 489C vs BNS 180) →

FAQs on Section 489C IPC

What does Section 489C IPC punish?▼

Section 489C IPC punishes possessing any forged or counterfeit currency-note or bank-note, knowing or having reason to believe it to be counterfeit and intending to use it as genuine.

What is the punishment prescribed under Section 489C IPC?▼

The court may award imprisonment of either description for a term which may extend to seven years, or fine, or both.

Is mere possession of a counterfeit note an offence under Section 489C IPC?▼

No. The prosecution must prove both that the accused knew or had reason to believe the note was counterfeit, and that he intended to use it as genuine or that it might be used as genuine.

How does Section 489C IPC differ from Section 489B IPC?▼

Section 489B IPC punishes actual trafficking, selling, buying, receiving, or using of counterfeit notes, whereas Section 489C IPC punishes possession with the intention that they be used as genuine.

Is Section 489C IPC bailable and cognizable?▼

Section 489C IPC is cognizable and bailable under the First Schedule to the Code of Criminal Procedure, 1973.

Which court tries an offence under Section 489C IPC?▼

The offence is triable by a Court of Session.

Can an offence under Section 489C IPC be compounded?▼

No. Section 489C IPC is not listed in Section 320 CrPC and cannot be compounded.

Where is Section 489C IPC placed in the Bharatiya Nyaya Sanhita?▼

It is placed in Section 180 BNS, in Chapter X, Of Offences Relating to Coin, Currency-Notes, Bank-Notes and Government Stamps.

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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 ·