Uttar Pradesh is fast becoming a hub for counterfeit currency smuggled purportedly across the porous and largely unguarded border with Nepal.

In August 2008, a Reserve Bank of India team unearthed counterfeit currency amounting to over Rs.5 million from the currency chest of State Bank of India's Domariaganj branch in Siddharthnagar district in eastern Uttar Pradesh.

This followed the arrest of the bank's chief cashier and recovery of a large amount of both genuine and fake currency from his house.