RBI asks banks to go for CCTV cover to check fake currency notes

The RBI also advised banks that all bank branches and identified back offices should be equipped with ultra-violet lamps, other appropriate banknote sorting or detection machines.

By: ENS Economic Bureau | Mumbai | Published:October 28, 2016 12:58 am

The Reserve Bank of India (RBI) has asked banks to put entire banking areas under the CCTV surveillance and keep all the recordings that can help identify “unscrupulous elements” in order to check fake currency circulation in the banking system. The RBI is considering additional identity requirements for the use of Indian banknotes in large numbers, it said.

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“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,” the RBI warned banks and customers.

The RBI also advised banks that all bank branches and identified back offices should be equipped with ultra-violet lamps, other appropriate banknote sorting or detection machines. “Further, banks should ensure that cash receipts in the denominations of Rs 100 and above are not put into re-circulation without the notes being machine processed for authenticity,” the RBI said.

The Reserve Bank further said that failure of banks in detection and impounding of counterfeit notes and in preventing such currencies from being re-circulated will be violative of the directions and “will, therefore, attract penal action”.

“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,” it said in a statement. The RBI has also asked the public 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.