Section 489D IPC: Making or possessing instruments or materials for forging or counterfeiting currency notes or bank-notes

Indian Penal Code, 1860

Section 489D IPC at a Glance

Section 489D IPC deals with making or possessing instruments or materials for forging or 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 181 BNS.

Punishment

Imprisonment for life, or imprisonment of either description for a term which may extend to ten years.

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

Section 181 →

Section 489D IPC Bare Act Text

489D. Making or possessing instruments or materials for forging or counterfeiting currency notes or bank-notes

Whoever makes, or performs any part of the process of making, or buys or sells or disposes of, or has in his possession, any machinery, 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 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 489D, Indian Penal Code, 1860

Section 489D IPC in Simple Words

Section 489D of the Indian Penal Code (IPC) punishes making, performing any part of the process of making, buying, selling, disposing of, or having in possession any machinery, instrument, or material for forging or counterfeiting currency-notes or bank-notes. The accused must act for the purpose of using the machinery, instrument, or material for such counterfeiting, or knowing or having reason to believe that it is intended to be used for that purpose.

No counterfeit note need have been produced. 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, non-bailable, triable by a Court of Session, and not compoundable under Section 320 CrPC.

Ingredients of Section 489D IPC

  • The accused made, performed any part of the process of making, bought, sold, disposed of, or had in possession any machinery, instrument, or material
  • The machinery, instrument, or material was for the purpose of being used for forging or counterfeiting any currency-note or bank-note
  • Alternatively, the accused acted knowing or having reason to believe that the machinery, instrument, or material was intended to be used for forging or counterfeiting any currency-note or bank-note

Punishment Under Section 489D IPC

Imprisonment

Imprisonment for life, or imprisonment of either description for a term which may extend to ten years.

Fine

The offender is also liable to fine. The statute does not prescribe a mandatory fine or fix a maximum amount.

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

Making or possessing machinery, instrument, or material for forging or 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. The offence is cognizable, non-bailable, and triable by a Court of Session.

Example of Section 489D IPC

In 2015 at a metalworking shop in Moradabad, Naveen etched copper printing blocks bearing the design of one thousand rupee currency-notes and sold those blocks to Farhan. Naveen made and sold the engraved instruments knowing that Farhan intended to use them for forging and counterfeiting currency-notes. Farhan bought and kept the copper blocks in his possession for the purpose of using them to counterfeit currency-notes. Both Naveen and Farhan are punishable under Section 489D IPC.

When Section 489D IPC Does Not Apply

  • The machinery, instruments, or materials were made, bought, or kept solely for legitimate printing or manufacturing work.
  • The person who sold or possessed the equipment neither intended it to be used for counterfeiting currency-notes or bank-notes nor knew or had reason to believe that it would be so used.
  • The accused only possessed finished counterfeit currency-notes and never made, bought, sold, disposed of, or possessed any machinery, instrument, or material for making them.

Section 489D IPC in the BNS

Section 489D IPC is now covered under Section 181 BNS.

Section 489D IPC corresponds to Section 181 BNS. Section 181 BNS broadens the scope of the offence by adding mending to making, adding die alongside machinery, instrument, or material, and extending protection to coin and Government revenue stamps alongside currency-notes and bank-notes. The punishment remains unchanged at imprisonment for life or imprisonment of either description for a term which may extend to ten years, and liability to fine.

View detailed comparison (IPC 489D vs BNS 181) →

FAQs on Section 489D IPC

What does Section 489D IPC punish?▼

Section 489D IPC punishes making, performing any part of the process of making, buying, selling, disposing of, or possessing any machinery, 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 currency-note or bank-note.

What is the punishment under Section 489D 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.

Must a counterfeit note have been produced to commit an offence under Section 489D IPC?▼

No. Making, buying, selling, disposing of, or possessing machinery, an instrument, or material with the requisite purpose or knowledge completes the offence even if no counterfeit note has been made.

Is possession of a commercial printing press an offence under Section 489D IPC?▼

No. Equipment kept and operated for lawful printing without the purpose, knowledge, or reason to believe that it is intended for counterfeiting currency-notes or bank-notes does not fall under this section.

Is an offence under Section 489D IPC bailable and cognizable?▼

The First Schedule to the Code of Criminal Procedure classifies it as cognizable and non-bailable, triable by a Court of Session. The police may arrest without a warrant, and bail is not a matter of right.

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

No. Section 320 CrPC does not list Section 489D IPC, so the offence cannot be compounded under any circumstances.

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

Section 489D IPC is replaced by Section 181 BNS in Chapter X. Section 181 BNS also covers coin and Government stamps, adds mends and dies, and maintains the same punishment.

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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 ·