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RBI/2016-17/102
DCM (FNVD) No.1134/16.01.05/2016-17
October
27, 2016
The Chairman & Managing
Director
Chief Executive Officers
All Banks
Dear Sir / Madam,
Detection and Impounding of
Counterfeit Notes
It has come to our notice that
some unscrupulous elements are putting into circulation Fake Indian
Currency Notes of higher denominations in the course of normal
transactions, taking advantage of the gullible and unsuspecting nature of
some members of the public.
2. In the wake of the above,
members of public have been requested through a Press Release (copy enclosed) 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 banknotes.
3. In this regard please refer
to the Master Circular DCM (FNVD)
No.G-6/16.01.05/2016-17 dated July 20, 2016, relating to Detection
and Impounding of Counterfeit Notes wherein banks were advised to ensure
that counterfeit notes making entry into the banking system are promptly
detected and under no circumstance, returned to the tenderer or reissue
them. Banks were also advised that with a view to facilitating 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 ? 100 and above are not put into
re-circulation without the notes being machine processed for authenticity.
The said 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 No.3158/09.39.00
(Policy)/2009-10 dated November 19, 2009 issued by the Reserve
Bank.
4. Banks should also 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. With a
view to educating the branch staff and customers on detection of
counterfeit notes, information available at our website paisaboltahai.rbi.org.in should be brought
to their attention.
5. In order to facilitate
identification of people abetting circulation of counterfeit notes, banks
are advised to cover the banking hall/area and counters under CCTV
surveillance and recording and preserve the recording.
6. We reiterate that failure of
the banks in detection and impounding of counterfeit notes and in
preventing such notes from being re-circulated will be violative of the Directions
cited above and will, therefore, attract penal action.
7. Kindly acknowledge receipt.
Yours faithfully,
(P Vijaya Kumar)
Chief General Manager
Encl: As above
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