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RBI: Banks to ensure authenticity of Rs 100 notes

The central bank said that banks must ensure authenticity of notes received on their counters before re-circulation

May 10, 2012 3:43 IST | India Infoline News Service

To check circulation of fake notes, the Reserve Bank of India (RBI) has asked all banks to ensure authenticity of notes of Rs 100and above denomination before re-circulation.

The central bank in a notification said, “In light of Para 127 of the Monetary Policy Statement 2012-13... banks should now re-align their cash  management in such a manner so as to ensure that cash receipts in the denominations of Rs 100 and above should not be put into re-circulation without the notes being machine processed for authenticity.”

According to RBI, banks should use such machines in all bank branches with average daily cash receipt of Rs 50 lakh and above,within a definite time frame. The central bank said that banks must ensure authenticity of notes received on their counters before re-circulation. It had also asked banks to streamline their system which will make them bear the risk of counterfeit bank notes rather than the common man who unknowingly comes in possession of such notes.

“The above instructions shall come into effect immediately and are applicable to all bank branches, irrespective of the volume of daily cash receipt,” RBI said.

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