Mumbai: The Reserve Bank of India on Friday directed banks to ensure that their branches in districts along international borders are equipped with note authentication and sorting machines, after finding thata the efforts of some lenders to detect counterfeit currency were inadequate.
The central bank said its analysis showed gaps in the implementation of existing measures for detecting, impounding and reporting Fake Indian Currency Notes (FICNs).
Under the comprehensive instructions issued through a master direction in April, banks are required to train all employees handling cash on the security features of genuine banknotes and methods of detecting counterfeit notes.
All banknotes received by banks have to be examined for authenticity through machines. Counterfeit notes detected during the process must be impounded in every case and cannot be returned to the tenderer or destroyed at the bank.
The RBI said all detected FICNs must also be reported in accordance with prescribed guidelines.
“However, an analysis by the Reserve Bank suggests that efforts of some of the banks in the matter were not adequate,” it said in a circular.
