RBI directs banks to detect and impound fake currency
28 October 2016
In a move to curb the menace of counterfeit notes, Reserve Bank of India (RBI) has advised banks to ensure that counterfeit notes entring the banking system are promptly detected and under no circumstance, returned to the tenderer or reissued.
To this end, RBI has also advised banks that in order to facilitate the detection of counterfeit notes, all bank branches / identified back offices should be equipped with ultra-violet lamps / other appropriate banknote sorting / detection machines.
Further, banks should ensure that cash receipts in the denominations of Rs100 and above are not put into re-circulation without the notes being machine processed for authenticity.
RBI said the instructions are applicable to all bank branches, irrespective of the volume of daily cash receipt. Any non-compliance will be construed as violation of the directive issued by the central bank.
The central bank also asked banks to ensure that cash handling staff at the frontline and back office are fully conversant with and well trained about the security features of a banknote.
In order to facilitate identification of people abetting circulation of counterfeit notes, banks have been advised to cover the banking hall / area and counters under CCTV surveillance and record and preserve the recording.
In the wake of large amounts of fake Indian currency of higher denominations being put into circulation by unscrupulous elements in the course of normal transactions, taking advantage of the gullible and unsuspecting nature of some members of the public,
RBI has also advised members of public to make it a habit of looking at the notes before accepting them in the usual course of daily transactions and help arrest the counterfeiting of Indian bank notes.