RBI on alert after counterfeit notes resurface

The Reserve Bank of India (RBI) is on alert after the National Investigation Agency (NIA) found fake currency notes in circulation.

Sources said that all measures have been put in place to detect use of fake notes after NIA shared information that fake notes we're being pumped in from Pakistan. “We are alert to the situation. We have a robust system in place for detecting fake notes," said a banking industry official.

The circulation of high quality fake notes was one of the six major emerging challenges cited by the NIA at a meeting on Monday. The NIA is the nodal agency for fake note related cases.

RBI had earlier issued guidelines for banks on counterfeit notes.

Bank notes tendered over the counter should be examined for authenticity through machines.

Similarly, bank notes received directly at the back office/currency chest through bulk tenders should also be examined through machines.

No credit to customer’s account is to be given for counterfeit notes, if any, detected in the tender received over the counter or at the back-office/currency chest.

In no case, the counterfeit notes should be returned to the tenderer or destroyed by the bank branches/treasuries. Failure of the banks to impound counterfeit notes detected at their end will be construed as wilful involvement of the bank concerned in circulating counterfeit notes and penalty will be imposed.

Source: Business Line


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