Section 61: Reproduction and Counterfeiting of Currency

1) No one shall commit or cause to commit any of the following acts:

(a) To forge, counterfeit or alter banknotes and coin in circulation as legal tender in Nepal or any cheques or payment cards or to do any other act relating to it or to assist in any of such acts,

(b) To possess, transport or issue any banknote or coin or cheque or payment card with the knowledge that such banknote or coin, cheque or payment card was falsely made, forged, counterfeited or altered or to assist in such acts in any manner,

(c) To possess, transport any sheet of metal, stone, paper, die or any other material or substance with the knowledge that it was destined to be used in falsely making, forging, counterfeiting or altering any banknote or coin, cheque or payment card or to assist in any of such acts.

2) Any reproduction of banknotes, coins, checks, securities or payment cards, denominated in Rupee, and the creation of any object that by their design imitates any such banknote, coin, check, security or payment card, require the prior written authorisation of the Bank.

3) The Bank may take appropriate action to prevent the issue of fake notes, counterfeit currency, duplicate cheques, or payments. The Bank may issue necessary orders, directives or notices while taking such actions.