Section 178 of the Bharatiya Nyaya Sanhita (BNS) applies when a person counterfeits or knowingly participates in any part of the counterfeiting process of coins, government stamps, currency notes, or bank notes.
This section ensures severe punishment for those involved in counterfeiting, which is a serious offense affecting national security and financial stability.
Explanation:
Bank-note refers to a promissory note or financial document issued by any authorized banking institution or sovereign power that can be used as money or its substitute.
Coin refers to metal used as money, stamped, and issued by an authorized state or sovereign power, as defined under the Coinage Act, 2011.
A person commits counterfeiting a government stamp by altering a stamp to change its denomination.
A person commits counterfeiting a coin by altering its weight, composition, or appearance to deceive others.
Punishment:
Whoever counterfeits or knowingly assists in counterfeiting shall be punished with imprisonment for life or imprisonment of up to ten years, along with a fine.
How It Protects:
This section safeguards the financial system and prevents misuse of official currency, coins, and government revenue stamps.
It ensures that counterfeiting, which can destabilize the economy, is strictly punished.
Example:
If a person alters a ₹10 coin to appear as a ₹50 coin, they are guilty under this section.
Similarly, if someone fabricates fake government revenue stamps, they can be prosecuted and punished.
