Tackling fake currency

The Reserve Bank of India has asked banks to ensure that fake notes are detected at the branch level to avoid inconvenience caused to the common man in case he unknowingly comes in possession of counterfeit notes.

The Reserve Bank of India has asked banks to ensure that fake notes are detected at the branch level to avoid inconvenience caused to the common man in case he unknowingly comes in possession of counterfeit notes.

It has already been stipulated that bank notes in the denomination of Rs 100 and above are processed through machines conforming to the standards/parameters prescribed by the Reserve Bank,before issuing them over their counters or through ATMs, said the RBI in its annual policy statement.

The stipulation has been made to prevent their entry of fake currency back into circulation. It is also observed that despite the above measure and after rationalising,the procedure of filing FIRs,the detection and subsequent reporting of counterfeit bank notes by banks continue to be inadequate, the RBI said.

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The failure to file an FIR makes it difficult for the apex bank to assess the number of counterfeit notes in circulation.

It has advised banks to ensure that the notes received over the counters are re-circulated only after proper examination through machines; and to streamline their system in a manner which will make them bear the risk of counterfeit bank notes rather than the common man. Banks are expected to follow the revised procedure for detection of counterfeit notes and its reporting,as stipulated by the Reserve Bank.

Keeping in view the geographical spread of bank branch network and leveraging technology,RBI has also decided to channelise the distribution of bank notes and coins only through currency chests or bank branches,thus making available the related services closer to customers. According to the RBI,detailed guidelines in this regard will be issued separately.