RBI makes it easier to report fake notes to banks Written By Admin on 01 July 2013 | Monday, July 01, 2013 The next time someone passes on a fake currency note to you without your knowledge, you need not palm it off surreptitiously. The Reserve Bank of India (RBI) on Friday (28/6/2013) directed banks to accept all fake notes over the counter from customers and pay them back the full amount. In return, banks will get 25% of the amount of the fake note back from the RBI. To stop misuse of the system by unscrupulous entities, RBI also directed banks to monitor the patterns and trends of fake note detection and bring them to the notice of the central bank and the police immediately. "Detection of counterfeit notes, at banks, should be at the back office or currency chest only. Banknotes when tendered over the counters may be checked for arithmetical accuracy and other deficiencies like whether there are mutilated notes, and appropriate credit passed on to the depositor/account or value in exchange given," the RBI noted. RBI to compensate banks 25% of losses for reporting fake notes These instructions have become effective from July 1, 2013, the banks should commence reporting to RBI from August 2013 Add to My Page Read more on: RBI | Fake notes The Reserve Bank will compensate banks 25% of the losses for reporting of counterfeit bank notes of Rs 100 and above to it and other authorities. "It has been decided to compensate the banks 25% of the loss incurred in respect of counterfeit notes of Rs 100 and above detected by them and reported to RBI and Police authorities," RBI said in a notification. RBI further said that these instructions have become effective from July 1, 2013 and the banks should commence reporting to RBI from August 2013. To address the menace of counterfeit notes, the central bank in its monetary policy statement had said that banks will be incentivised for reporting of counterfeit notes detected by them. RBI has also asked the banks to ensure that the notes received over the counters are re-circulated only after ensuring that proper authentication is done through machines. It also asked the banks to streamline their system so as to make it bear the risk of counterfeit bank notes than the common man who unknowingly comes in possession of such notes. To detect counterfeit notes at bank or branch level itself before putting it into circulation, banks are required to process notes of Rs 100 and above denomination through machines as per the standards prescribed by the RBI. According to RBI data, as many as 69.38 billion counterfeit notes were in circulation in 2011-12 and of these as many as 27.84 billion were of Rs 100 and higher denomination. However, of these only 5.21 lakh counterfeit notes were detected by the system.
Posted on: Wed, 03 Jul 2013 08:38:45 +0000
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