With the value of counterfeit notes detected during 2008-09 increasing by 183.1 per cent to Rs 15.57 crore (3.98 lakh notes) as against Rs 5.49 crore (1.95 lakh notes) in 2007-08, a Reserve Bank of India panel has recommended a host of measures like installing note sorting machines at all bank branches and enhancing security features in notes to tackle the menace. It also proposed new ATMs installed may be provided with in-built note detectors. Over a period, existing ATMs should also be required to have in-built note detectors.

The ratio of fake notes has doubled to eight per 10 lakh notes in 2008-09 as against four in the previous year. “The increase in detection is attributable to installation of note sorting machines (NSMs) by all the banks at their currency chest branches to facilitate examination and detection of counterfeit notes at the currency chest level itself and the setting up of the forged note vigilance cells (FNVCs) at the banks,” it said.

In a bid to curtail the circulation of fake notes, the RBI should direct the banks that they should install note sorting machines in all branches in a phased manner, it said. “In the first instance, all branches with average daily cash receipt of Rs 1 crore or above may be equipped with NSMs by March 2010 and branches with average daily cash receipt of more than Rs 50 lakh by March 2011. The banks should provide a road map to RBI for equipping the remaining branches with NSMs, which will be monitored by RBI,” the RBI panel headed by deputy governor Usha Thorat said.

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