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03 March 2013, 00:11   Report Abuse

Riya Saha.......


[ Scorecard : 604]

Banks may be held responsible for ATM fake notes

Reserve Bank of India wants to change the law that makes the holder of counterfeit currency responsible for it. Governor Duvvuri Subbarao said the central bank is working with the government to amend the law and make the source of counterfeit currency legally liable. 

"We are negotiating with the government for reviewing and changing the law," Subbarao said in Guwahati after the RBI central board meeting. The law makes the holder of counterfeit currency notes responsible for their value. 
Banks have been flooded with complaints of counterfeit currency notes coming out of ATM machines. In such cases, it is the bank customer who suffers the loss as banks seize the notes. "We have asked bank managers to be sympathetic and take into consideration the circumstances when a person approaches with fake notes," the governor said. Banks must check currencies for genuineness and cleanliness before putting them into ATM machines, he said.The central bank detected 5.21 lakh pieces of counterfeit notes in different denominations in 2011-12, 20% more than in the previous fiscal, signalling a rise in circulation of fake notes and better detection techniques as well. About 93% detection of counterfeit notes was done by bank branches and customers lost their money. According to existing rules, detection of such notes are reported to the police. 
The RBI, in co-ordination with the central government, has been pursuing with all state governments to nominate a nodal police station in every district for the purpose of reporting such cases. If bank branches or treasury offices detect five or more fake notes in a single transaction, an FIR must be registered. 

11 June 2019, 23:31  


[ Scorecard : 46]

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