Manoj Badgeri I TNN
Mumbai: Ever felt twitchy about finding a fake note in the cash that your ATM just dispensed or in the change that your grocer gave out If so,you are not alone.The counterfeit-currency menace has come to haunt banks as well as the police.
According to the Reserve Bank of India (RBI) website,Rs 2.31 crore in fake currency were detected in 2006-07.The number more than doubled (Rs 5.49 crore) in 2007-08 and jumped to Rs 15.57 crore in 2008-09.These soaring figures clearly indicate that this year may not be any different.
Not surprisingly,the figures have caused a flutter in the banking circle,which was evident from the fact that most public,private and international banks that TOI spoke to were ready to comment only on the condition of anonymity.
A source from the Mumbai-based Indian Banks Association (IBA) informed that its members had approached the Centre before the Budget session with the counterfeit currency problem.
All banks have been instructed to issue only clean and genuine notes to the public and follow instructions detailed in the Master Circular 2009 regarding Detection and Impounding of Counterfeit Notes, said an RBI spokesperson.
According to the circular issued by the RBIs Department Of Currency Management,a fake note,once detected,should be seized in the presence of the tenderer and stamped as counterfeit.The police should also be informed, the circular further states.
The RBI had also recommended that banks set up a forged note vigilance cell and instal note-sorting machines (NSMs).However,most banks are yet to put in place these countercounterfeit currency measures, said a banking expert.
Banks are in the process of complying with the RBI directives,but it will take some time.Till then,they are vulnerable, said K Unnikrishnan,deputy chief executive officer of IBA.
An ICICI Bank official told to TOI that all their branches strictly adhere to the RBIs clean-note policy.We inform the police about counterfeit notes detected in our branches over a period of time, said a representative of the bank.This is a standard procedure and is followed by the Indian banking sector, he added.
A spokesperson of Axis Bank said that they were working towards strengthening their currency management situation and all the branches would be in compliance with the RBI guidelines before the end of the year.
A Standard Chartered Bank (SCB) spokesperson confirmed conformity with RBI regulations.We regularly invite experts to conduct training sessions on counterfeit note detection and refund rules.The sorting machines and ultraviolet detectors are also used to spot forged notes, said the spokesperson.
In an attempt to ensure that no fake note is dispensed through ATMs,the Indian government and the National Security Council have taken a view that in such an event the bank concerned would be held responsible.In case a fake note is dispensed through an ATM,it would be construed as an attempt to circulate counterfeit notes by the bank concerned, said a spokesperson,quoting from the RBI mandate.
Aware of the gravity of the situation,several banks have begun educating customers to stem such instances.Most banks,such State Bank of India,Bank of Baroda and The Kalyan Janata Sahakari Bank Ltd,have put up posters detailing the differences between a genuine note and a counterfeit one.
While officials of Bank of America and HDFC declined to comment,Barclays and Royal Bank of Scotland NV did not respond.
manoj.badgeri@timesgroup.com
Mumbai: Ever felt twitchy about finding a fake note in the cash that your ATM just dispensed or in the change that your grocer gave out If so,you are not alone.The counterfeit-currency menace has come to haunt banks as well as the police.
According to the Reserve Bank of India (RBI) website,Rs 2.31 crore in fake currency were detected in 2006-07.The number more than doubled (Rs 5.49 crore) in 2007-08 and jumped to Rs 15.57 crore in 2008-09.These soaring figures clearly indicate that this year may not be any different.
Not surprisingly,the figures have caused a flutter in the banking circle,which was evident from the fact that most public,private and international banks that TOI spoke to were ready to comment only on the condition of anonymity.
A source from the Mumbai-based Indian Banks Association (IBA) informed that its members had approached the Centre before the Budget session with the counterfeit currency problem.
All banks have been instructed to issue only clean and genuine notes to the public and follow instructions detailed in the Master Circular 2009 regarding Detection and Impounding of Counterfeit Notes, said an RBI spokesperson.
According to the circular issued by the RBIs Department Of Currency Management,a fake note,once detected,should be seized in the presence of the tenderer and stamped as counterfeit.The police should also be informed, the circular further states.
The RBI had also recommended that banks set up a forged note vigilance cell and instal note-sorting machines (NSMs).However,most banks are yet to put in place these countercounterfeit currency measures, said a banking expert.
Banks are in the process of complying with the RBI directives,but it will take some time.Till then,they are vulnerable, said K Unnikrishnan,deputy chief executive officer of IBA.
An ICICI Bank official told to TOI that all their branches strictly adhere to the RBIs clean-note policy.We inform the police about counterfeit notes detected in our branches over a period of time, said a representative of the bank.This is a standard procedure and is followed by the Indian banking sector, he added.
A spokesperson of Axis Bank said that they were working towards strengthening their currency management situation and all the branches would be in compliance with the RBI guidelines before the end of the year.
A Standard Chartered Bank (SCB) spokesperson confirmed conformity with RBI regulations.We regularly invite experts to conduct training sessions on counterfeit note detection and refund rules.The sorting machines and ultraviolet detectors are also used to spot forged notes, said the spokesperson.
In an attempt to ensure that no fake note is dispensed through ATMs,the Indian government and the National Security Council have taken a view that in such an event the bank concerned would be held responsible.In case a fake note is dispensed through an ATM,it would be construed as an attempt to circulate counterfeit notes by the bank concerned, said a spokesperson,quoting from the RBI mandate.
Aware of the gravity of the situation,several banks have begun educating customers to stem such instances.Most banks,such State Bank of India,Bank of Baroda and The Kalyan Janata Sahakari Bank Ltd,have put up posters detailing the differences between a genuine note and a counterfeit one.
While officials of Bank of America and HDFC declined to comment,Barclays and Royal Bank of Scotland NV did not respond.
manoj.badgeri@timesgroup.com
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