Introduction of BNS 178
The stability of a nation’s financial system depends on the integrity of its currency and official instruments. To protect this, Section 178 of the Bharatiya Nyaya Sanhita (BNS), 2023, criminalizes the counterfeiting of coins, government stamps, currency notes, and banknotes. Counterfeiting strikes at the root of economic trust and is therefore treated as a serious offence, carrying severe punishments including life imprisonment. By defining “coin” and “bank-note” and by prescribing strict penalties, this section ensures that India’s financial and administrative credibility is safeguarded against fraud and manipulation.
The provision replaces and consolidates multiple sections from the Indian Penal Code (IPC) such as Sections 232, 255, and 489A, which earlier dealt separately with counterfeiting coins, stamps, and currency notes.
The Bharatiya Nyaya Sanhita (BNS) Section 178 replaces the old Indian Penal Code (IPC) Section 171-H.
What is BNS Section 178 ?
BNS Section 178 addresses the counterfeiting of government-issued or authorized coins, stamps, and notes. It criminalizes any act of making, altering, or reproducing fake versions of these items with the intent to deceive.
Under Section 178 of the bns act 2023
Whoever counterfeits, or knowingly performs any part of the process of counterfeiting, any coin, government stamp, 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.
Explanation 1 – The expression “bank-note” means a promissory note or engagement for the payment of money to the bearer on demand, issued by any bank, authority, or sovereign power, and intended to be used as equivalent to or as a substitute for money.
Explanation 2 – The expression “coin” means any metal stamped and issued by the authority of any sovereign power in order to be used as money, and includes metal which is a legal tender under the Coinage Act, 2011.
Explanation of Section 178
Section 178 of the Bharatiya Nyaya Sanhita (BNS), 2023, criminalises counterfeiting of coins, government stamps, currency notes, and banknotes. It is one of the strictest provisions because counterfeiting threatens economic stability, public trust, and national security.
- What is Counterfeiting?
Counterfeiting means making, altering, or imitating a genuine item (coin, stamp, or note) to deceive people into believing it is real. - Covers Coins, Stamps, and Notes Together
Unlike the IPC (where coins, stamps, and notes were separate provisions), BNS 178 consolidates them into one section. - Participation in the Process
Even if a person does not complete the counterfeiting act but assists or contributes knowingly (e.g., by supplying materials, machines, or designs), they are guilty under this section. - Definitions
- Bank-note → Any instrument promising payment on demand (domestic or foreign), intended as a substitute for money.
- Coin → Any stamped piece of metal issued by authority, including those under the Coinage Act, 2011.
- Punishment
- Life imprisonment, or
- Imprisonment up to 10 years, and
- Fine (amount decided by court).
- Offence Classification
- Cognizable → Police can arrest without a warrant.
- Non-bailable → Bail is not a right; court decides based on seriousness.
- Non-compoundable → Cannot be settled privately between parties.
- Trial by Court of Session → Handled only by higher courts due to seriousness.
Key Elements of Section 178
- Counterfeiting Act → Making or imitating coins, stamps, or notes to pass them off as genuine.
- Knowingly Assisting → Anyone knowingly aiding the process is equally guilty.
- Covers Multiple Instruments → Consolidates offences relating to coins, government stamps, and currency notes.
- Severe Punishment → Life imprisonment or up to 10 years + fine.
- Bank-note Defined Broadly → Includes domestic and foreign notes.
- Coin Defined → As per Coinage Act, 2011; includes legal tender metal.
- Stamp Counterfeiting → Altering a stamp of one denomination to appear as another is included.
- Cognizable → Ensures swift police action.
- Non-bailable → Accused cannot secure bail easily.
- Tried by Sessions Court → Reflects the gravity of the offence.
Examples of BNS Section 178
Example 1 – Printing Fake Notes:
A person sets up a press to print ₹500 notes that look identical to genuine ones. Even if only part of the printing is completed, this is counterfeiting under Section 178, punishable with life imprisonment.
Example 2 – Altering Stamps:
An individual modifies a ₹5 government revenue stamp to look like a ₹50 stamp. This alteration is counterfeiting of government stamps.
Example 3 – Coin Tampering:
Someone takes ₹1 coins and modifies their weight/appearance to resemble ₹10 coins. This act is counterfeiting coins under Section 178.
Example 4 – Supplying Materials:
A person knowingly supplies special ink and paper for fake notes. Even if they don’t print the notes, they are guilty for assisting in the process.
Why Section 178 is Important
- Protects National Economy → Fake currency destabilises financial systems.
- Prevents Revenue Loss → Stops counterfeiting of revenue stamps used in taxation.
- Strengthens Legal Framework → Replaces scattered IPC sections (232, 255, 489A) with one strong section.
- Deters Organised Crime → Severe penalties discourage criminals and terror networks that fund activities with counterfeit currency.
- Upholds Public Trust → Citizens’ confidence in money and government-issued instruments remains intact.
Section 178 BNS Overview
Bharatiya Nyaya Sanhita (BNS) Section 178 deals with counterfeiting of government-issued currency, coins, stamps, or notes. Counterfeiting is a serious offense because it undermines the financial integrity of the nation. This section outlines the offense, the terms related to it, and the punishments for engaging in any form of counterfeiting.
10 Key Points of BNS Section 178
- Offense of Counterfeiting:
- BNS 178 criminalizes the act of counterfeiting any coin, stamp issued by the government, or currency notes/banknotes. This includes not only the creation of fake items but also knowingly participating in any part of the process of counterfeiting.
- Example: If someone prints fake currency notes or helps modify a coin to make it look like a different one, they are committing this offense.
- Broad Scope of Counterfeiting:
- The scope of counterfeiting under BNS 178 is broad. It doesn’t just apply to full counterfeiting but also to anyone involved in any part of the process. Even those assisting the counterfeiter with knowledge of the illegal activity are considered guilty.
- Example: A person who provides machinery or materials used for making counterfeit notes is as culpable as the one printing the notes.
- Bank-Notes Definition:
- The section defines “bank-note” as any promissory note or an engagement issued for the payment of money to a bearer on demand. It could be issued by a banking institution anywhere in the world or by a sovereign authority.
- Important Aspect: Any instrument intended to act as a substitute for money is considered a bank-note. It covers both domestic and international fake notes.
- Coin Definition:
- Under this section, “coin” refers to any metal that is stamped and issued by a sovereign authority for use as money. It includes coins as defined in the Coinage Act, 2011, and covers metal used as legal tender.
- Example: Tampering with the composition or the appearance of an official coin is considered counterfeiting, even if it’s a slight alteration.
- Counterfeiting Government Stamps:
- The section defines the specific offense of counterfeiting government stamps. It includes causing a stamp of one denomination to appear as a stamp of a different denomination.
- Example: Modifying a ₹5 revenue stamp to look like a ₹10 stamp would fall under this offense.
- Counterfeiting Coins:
- This specific subsection covers counterfeiting coins, where someone makes a genuine coin appear like a different coin to deceive others. This includes tampering with the coin’s weight, appearance, or material composition.
- Example: If a ₹1 coin is made to look like a ₹10 coin by changing its weight or appearance, it is considered counterfeiting.
- Punishment for Counterfeiting:
- The punishment for counterfeiting under BNS 178 is severe. It includes imprisonment for life or imprisonment up to 10 years, and the offender will also be liable to a fine.
- Reason for Severity: The punishment reflects the gravity of the offense, as counterfeiting impacts national economic stability and can be used to finance illegal activities.
- Cognizable Offense:
- BNS 178 is classified as a cognizable offense, meaning the police have the authority to arrest the accused without a warrant. Immediate action is allowed due to the seriousness of the crime.
- Why It’s Important: Swift police action is essential to stop the spread of counterfeit currency or stamps that could further damage the economy.
- Non-Bailable Offense:
- Section 178 is non-bailable, which means that the accused does not have the right to secure bail easily. The court has to consider various factors and evidence before granting bail.
- Why Non-Bailable? The non-bailable nature of the offense reflects the potential risk the accused may pose to society and the economy if they are released.
- Trial by Court of Session:
- The case for an offense under BNS 178 will be tried in a Court of Session. Given the severity of the crime, only higher courts have the jurisdiction to handle these cases, ensuring that the judicial process is thorough and stringent.
- Significance: Courts of Session handle more serious offenses, ensuring that cases involving national financial fraud are dealt with by experienced judges.
BNS 178 Punishment
- Punishment:
- Under Section 178, the punishment for counterfeiting coins, government stamps, currency notes, or banknotes is either life imprisonment or imprisonment up to 10 years.
- Fine:
- In addition to imprisonment, the offender is liable to pay a fine. The fine amount is not specified in the section and is decided by the court depending on the severity and scale of the offense.
BNS 178 bailable or not ?
Non-bailable:
- BNS Section 178 is a non-bailable offense, meaning that bail is not granted automatically. The accused can only be released on bail under special circumstances, and the decision rests with the court.
Comparison Table – BNS Section 178 vs IPC Provisions
| Aspect | BNS Section 178 | IPC 171H | IPC 232 | IPC 255 | IPC 489A |
|---|---|---|---|---|---|
| Offence | Counterfeiting coins, govt. stamps, currency notes, or banknotes. | Illegal payments in connection with elections without candidate’s written authority. | Counterfeiting coins. | Counterfeiting government stamps. | Counterfeiting currency notes or banknotes. |
| Scope | Single section consolidates all major counterfeiting offences. | Covers unauthorized election-related expenses. | Covers making or assisting in counterfeiting coins. | Covers making or assisting in counterfeiting government revenue stamps. | Covers making or assisting in counterfeiting paper currency or banknotes. |
| Punishment | Life imprisonment or up to 10 years + fine. | Fine up to ₹500 (IPC), raised to ₹10,000 in BNS 176. | Life imprisonment or up to 10 years + fine. | Imprisonment for life or up to 10 years + fine. | Life imprisonment or up to 10 years + fine. |
| Cognizability | Cognizable. | Non-cognizable. | Cognizable. | Cognizable. | Cognizable. |
| Bailable? | Non-bailable. | Bailable. | Non-bailable. | Non-bailable. | Non-bailable. |
| Compoundable? | Non-compoundable. | Non-compoundable. | Non-compoundable. | Non-compoundable. | Non-compoundable. |
| Trial Court | Court of Session. | Magistrate of the First Class. | Court of Session. | Court of Session. | Court of Session. |
| Key Difference / Note | BNS 178 consolidates multiple IPC provisions on counterfeiting into one modern section. | Unrelated to counterfeiting; dealt with election payments. | Focused only on coins. | Focused only on stamps. | Focused only on paper currency and banknotes. |
BNS Section 178 FAQs
What is BNS Section 178?
BNS Section 178 deals with the offense of counterfeiting coins, stamps, currency notes, or banknotes issued by the government or any sovereign authority. It defines the act of counterfeiting and prescribes strict punishments for it.
What are the punishments under BNS Section 178?
The punishments include imprisonment for life, or imprisonment for up to 10 years, along with a fine. The severity of the punishment reflects the serious nature of the crime.
Is counterfeiting under BNS Section 178 a bailable offense?
No, counterfeiting under this section is a non-bailable offense. This means that the accused cannot get bail easily and the court will decide based on the circumstances and severity of the crime.
Can the police arrest without a warrant under BNS Section 178?
Yes, it is a cognizable offense, meaning the police can arrest the accused without needing a warrant. This allows for immediate legal action to prevent further harm caused by counterfeit items.
What constitutes ‘counterfeiting a coin’?
Counterfeiting a coin involves making a genuine coin appear like a different coin through changes in weight, material, or appearance. Any tampering with the coin’s official form with the intent to deceive is counterfeiting.
Which court handles cases under BNS Section 178?
Cases under this section are tried in a Court of Session. This ensures that a higher court deals with the offense, reflecting the seriousness of counterfeiting offenses in India.
Conclusion
BNS Section 178 provides a consolidated and modernized framework to deal with counterfeiting of coins, stamps, and currency notes. Unlike the IPC, which spread these offences across different provisions, the BNS unifies them under a single section with clear definitions and stringent punishment. By prescribing life imprisonment or up to 10 years along with fines, the law underscores the seriousness of counterfeiting and its potential threat to national economic security. The non-bailable and cognizable nature of this offence ensures swift action and strong deterrence, reinforcing India’s commitment to protecting the integrity of its currency and financial instruments.
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