Possession of forged or counterfeit currency-notes or bank-notes

Possessing any forged or counterfeit currency-note or bank-note, while knowing or having reason to believe it is fake and intending to use it as genuine or that it may be used as genuine, is an offence. Conviction can lead to imprisonment for up to seven years, a fine, or both. The key trigger is the knowledge or reasonable belief plus the intent to use or allow use as genuine.

Ravi buys a bundle of bank-notes from a stranger, suspects they are counterfeit, and plans to spend them. He can be prosecuted and, if convicted, face up to seven years imprisonment, a fine, or both under this rule.