Section 178 BNS: Counterfeiting Coin, Government Stamps, Currency-Notes or Bank-Notes

Section 178 of the Bharatiya Nyaya Sanhita, 2023 criminalises counterfeiting, or knowingly taking part in the process of counterfeiting, coins, Government revenue stamps, currency-notes and bank-notes. It also supplies important definitions for the chapter dealing with these offences.

Text and Scope of Section 178 BNS

For the official statutory text, see the Bharatiya Nyaya Sanhita, 2023 on India Code.

What Conduct Is Covered?

Section 178 applies not only where a person completes the counterfeiting of a protected item, but also where the person knowingly performs any part of the counterfeiting process. The protected items are:

• coin;
• a stamp issued by Government for the purpose of revenue;
• currency-note; and
• bank-note.

Definition of "Bank-Note"

For this chapter, "bank-note" means a promissory note or engagement for payment of money to bearer on demand that is issued by a 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.

Definition of "Coin"

Section 178 adopts the meaning assigned to "coin" in Section 2 of the Coinage Act, 2011. It also includes metal used for the time being as money that is stamped and issued by or under the authority of any State or Sovereign Power and intended to be so used.

Counterfeiting a Government Stamp

A person commits the offence of counterfeiting a Government stamp if the person causes a genuine stamp of one denomination to appear like a genuine stamp of a different denomination.

Counterfeiting Coin

The provision treats a person as counterfeiting coin where, intending to practise deception or knowing that deception is likely to be practised, the person causes a genuine coin to appear like a different coin.

The offence of counterfeiting coin also includes:

• diminishing the weight of the coin;
• altering its composition; or
• altering its appearance.

Punishment Under Section 178 BNS

The punishment prescribed by Section 178 is severe. A person convicted under the section may be punished with:

• imprisonment for life; or
• imprisonment of either description for a term up to 10 years;
• and the offender is also liable to fine.

Cognizable, Bailable and Trial Court

The First Schedule to the Bharatiya Nagarik Suraksha Sanhita, 2023 classifies an offence under Section 178 BNS as follows:

Corresponding Provisions Under the Indian Penal Code

The BNS consolidates subjects that were distributed across several provisions of the former Indian Penal Code, 1860, including provisions dealing with counterfeiting coin, Government stamps, currency-notes and bank-notes. Because the new provision combines and reorganises earlier offences, the corresponding IPC section may vary depending on the particular object and conduct involved. For acts occurring before the BNS came into force, the applicable law must be determined with reference to the date of the alleged conduct and the relevant saving provisions.

Related BNS Provisions

Section 178 should be read with the succeeding provisions dealing with forged or counterfeit monetary instruments and Government stamps, including Section 179 - Using as genuine forged or counterfeit coin, Government stamp, currency-notes or bank-notes and Section 180 - Possession of forged or counterfeit coin, Government stamp, currency-notes or bank-notes.

Official Legal Resources

Readers may verify the current legislation through the official Bharatiya Nyaya Sanhita, 2023 text on India Code, the Bharatiya Nagarik Suraksha Sanhita, 2023 on India Code, the Coinage Act, 2011 on India Code, and the Ministry of Home Affairs new criminal laws page.