Monday, October 5, 2015

Detection of Counterfeit Notes

i. Over the Counter: Bank notes tendered over the counter should be examined through machines. The counterfeit notes so detected, shall be stamped as "COUNTERFEIT NOTE" and impounded. Each impounded note shall be recorded under authentication, in a separate register.
ii. Bulk Receipts at Back Office / Currency Chest: Above procedure is to be followed where notes are received directly at the back office / currency chest through bulk tenders.
When a banknote is found to be counterfeit, an acknowledgement must be issued to the tenderer, after stamping the note. The receipt, in running serial numbers, should be authenticated by the cashier and tenderer. Notice to this effect should be displayed prominently at the offices / branches. The receipt is to be issued even where the tenderer is unwilling to countersign it.
No credit to the customer’s account is to be given for the counterfeit notes.
i. Compensation
No compensation will henceforth be paid to Banks for detection of counterfeit notes.
ii. Penalty
A penalty of 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 under the following circumstances:
a) When counterfeit notes are detected in the soiled note remittance of the bank.
b) If counterfeit notes are detected in the currency chest balance of a bank during Inspection.
All other instructions relating to examination of notes before issuance over the counter, top up of ATMs, reporting to police and other authorities, infrastructure, etc. to enable detection as well as liaison with the authorities, remain unchanged.

Based on RBI Circular dt 27/08/15. Please visit www.rbi.org.in for any further clarification if required…..          Poppy