RBI group suggests steps to counter circulation of fake notes

MUMBAI: A high level group constituted by RBI has recommended enhancing security features on currency notes and installation of notes-sorting machines among other steps to counter the rise in circulation of fake notes.

The High Level Group on Systems and Procedures for Currency Distribution recommended enhancing security features on currency notes which have to be constantly upgraded.

The group, headed by RBI Deputy Governor Usha Thorat, also suggested waiving the current requirement of filing an FIR by banks in case one gets possession of a few fake notes. It suggested that currency notes should be filled in ATMs in a highly secured manner.

The group also asked banks to give a roadmap for installing notes-sorting machines at all branches in a phased manner.

The sharp increase in the number of physical notes in circulation and the increase in the number of cases of fake notes detected or seized recently, have clearly underscored the need for increased vigil by all stakeholders to address the menace of fake notes, said the group.

The group, however, noted that the number of fake notes in India is estimated at 3 to 6 pieces per million, which is one of the lowest in the world.