RBI to compensate banks for reporting counterfeit notes
Updated: Jun 29, 2013 03:19:10pm
New Delhi, Jun 29 (KNN) The Reserve Bank of India will compensate banks 25 per cent of the loss incurred by them in respect of counterfeit notes in the denomination of Rs 100 and above detected by them and reported to RBI and police authorities.
The announcement has come amidst increasing circulation of fake currency.
The RBI also made it clear that notes received over the counters can be re-circulated only after ensuring their proper authentication through machines.
Banks will therefore have to streamline their system in a manner which will make them bear the risk of counterfeit bank notes rather than the common man who unknowingly comes in possession of such notes.
Rupee notes in the denomination of 100 and above are processed through machines conforming to the standards and parameters prescribed by the Reserve Bank, before issuing them over their counters or through ATMs.
The stipulation has been made, inter alia, to ensure that counterfeit notes are detected at bank and branch level itself, thereby preventing their entry back into circulation.
“It is also observed that despite the above measure and after rationalising the procedure of filing first information reports (FIRs), the detection and subsequent reporting of counterfeit bank notes by banks continue to be inadequate,” said RBI in a notification.
This has serious repercussions in that the Reserve Bank is not in a position to assess the number of counterfeit notes in circulation and its ramifications for the economy. (KNN)
The announcement has come amidst increasing circulation of fake currency.
The RBI also made it clear that notes received over the counters can be re-circulated only after ensuring their proper authentication through machines.
Banks will therefore have to streamline their system in a manner which will make them bear the risk of counterfeit bank notes rather than the common man who unknowingly comes in possession of such notes.
Rupee notes in the denomination of 100 and above are processed through machines conforming to the standards and parameters prescribed by the Reserve Bank, before issuing them over their counters or through ATMs.
The stipulation has been made, inter alia, to ensure that counterfeit notes are detected at bank and branch level itself, thereby preventing their entry back into circulation.
“It is also observed that despite the above measure and after rationalising the procedure of filing first information reports (FIRs), the detection and subsequent reporting of counterfeit bank notes by banks continue to be inadequate,” said RBI in a notification.
This has serious repercussions in that the Reserve Bank is not in a position to assess the number of counterfeit notes in circulation and its ramifications for the economy. (KNN)
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