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New guidelines on counterfeit notes

28Aug20151The Reserve Bank today has withdrawn its the instructions on compensation paid to banks for counterfeit notes detected at various stages. The regulator said in a communication to banks that the instructions on compensation to banks at 25% of the notional value of counterfeit notes detected and reported and the system of lodging claims for compensation by Forged Note Vigilance Cell of banks stands withdrawn. It also said the penalty at 100% of the notional value of counterfeit notes, in addition to the recovery of loss to the extent of the notional value of such notes, will be imposed when counterfeit notes are detected in soiled note remittance of the bank and if counterfeit notes are detected in currency chest balance of a bank during inspection/audit by RBI. It directed the banks to banks to authenticate over the counter banknotes through machines as well as to stamp those found fake as ‘counterfeit note’ and impound. Each such impounded note shall be recorded under authentication, in a separate register, it said. The same procedure would have to be followed for banknotes received in bulk at back office or currency chest through bulk tenders. Banks have also been advised to display notice to this effect in bank offices and branches.

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