No decision to introduce plastic notes: MoS Finance

New Delhi, Minister of State for Finance Pankaj Chaudhary on Tuesday said the government has taken no decision to introduce plastic notes. Efforts to enhance the durability and counterfeit resistance of the Indian banknotes is an ongoing process, he said in a written reply to the Rajya Sabha.

As per the RBI Annual Report 2022-23, he said, “The total expenditure incurred on security printing stood at Rs 4,682.80 crore for 2022-23. No cost has been incurred on printing of plastic notes”.

“Government has taken no decision to introduce plastic notes in terms of section 25 of the Reserve Bank of India Act, 1934. Efforts to enhance the durability and counterfeit resistance of the Indian banknotes is an ongoing process,” the minister said.

In reply to another question, Chaudhary said trading illegal commodities using any kind of assets, including crypto assets, is a crime and is dealt with as per existing penal provisions.

The Anti-Money Laundering (AML)/ Counter Financing of Terrorism (CFT) provisions under the PMLA further penalise money laundering, including through crypto assets, he said.

“Accordingly, the government vide notification dated March 7, 2023, explicitly brought the VDAs under the purview of the Prevention and Money-laundering Act, 2002 (PMLA). Directorate of Enforcement handles cases related to suspicious VDA transactions under the provisions of the PMLA, Foreign Exchange Management Act, 1999 (FEMA), and Fugitive Economic Offenders Act, 2018 (FEOA),” he said.

Observing that the government is aware that crypto asset transactions are taking place in the country, he said, these transactions, therefore, have been brought into a comprehensive taxation regime through the Finance Act 2022.

“Companies with exposure to crypto assets are required to disclose their holding of crypto assets in their financial statements as per the amendment brought in Schedule III to the Companies Act 2013, vide notification dated March 24, 2021, effective from April 1, 2021,” he said.

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