Detection and Impounding of Counterfeit Notes
Detection and Impounding of Counterfeit Notes
Detection and Impounding of Counterfeit Notes. Everyone has once in his lifetime received a counterfeit note. In day-to-day life, people don’t take the pain to report one or two fake notes received, Detection Impounding undetectablecounterfeitbills to the police, Detection Impounding Counterfeit Notes and tend to pass them off to others. However, doing such a thing is a crime punishable by imprisonment.
The Reserve Bank of India from time to time comes out with various notifications regarding the detection and impounding of counterfeit currency. In the Master Circular for Detection and Impounding of Counterfeit notes, RBI issues guidelines on impounding such currencies. For detailed rules mentioned in the circular see here.
Authority to impound counterfeit notes
- All Banks
- All treasuries and sub-treasuries
- Issue office of the RBI
Step 1: Detection of counterfeit currency
- All banknotes which are presented by customers at the bank counters or received directly in the currency chest should be examined through machines.
- According to the guideline issued by the RBI on May 11, 2010, on Installation of Note Sorting Machines-Note Authentication and Fitness Sorting Parameter (see here) all bank branches and offices should be equipped with ultraviolet lamp detection machines. The guidelines also provide other requirements to be fulfilled. At all currency chest branches of banks, there should be verification, processing, and sorting machines. Such machines help in detecting counterfeit currency.
Step 2: Impounding of counterfeit notes
All counterfeit notes received at the bank branches cannot be destroyed by the bank. Counterfeit notes should be stamped as “COUNTERFEIT NOTE.” The size of the stamp should be 5 cm x 5 cm, and the following should be inscribed:
- COUNTERFEIT BANKNOTE IMPOUNDED
- BANK / TREASURY/ SUB-TREASURY
- BRANCH / CURRENCY CHEST
- SIGNATURE
- DATE
Step 3: Reporting to the Police
- Every bank should appoint a nodal officer at the district level, and the same should be notified to the regional office of the RBI.
- The police after that register an FIR and start investigation.
- The police send a copy of all FIRs registered in a month to the Forged Note Vigilance Cell. the Forged Note Vigilance Cell submits a quarterly report on counterfeit notes to the Chief General Manager of, the Department of Currency Management, RBI.
- To identify persons circulating counterfeit currencies and to help police in their investigation banks should have CCTV cameras at cash counters.
Where to file a complaint if ATM is dispensing forged currency?
ATMs dispensing forged currency have become common these days. Detection Impounding Counterfeit Notes It becomes difficult for customers to prove their case and they lose their money. To protect consumers, RBI has issued guidelines to be followed by banks before filling cash in the ATMs (rules to be followed by banks have been discussed above). If someone gets fake currency from an ATM here is what he should do:
- Identify fake notes.
- Write down the serial number of the notes.
- Present the transactional slip and the passbook to the police.
- The police will register an FIR, followed by an investigation.
- The ATM security guard cannot be evidence for supporting your claim while filing an FIR. Thus it is advisable that if you spot a fake currency, show it on the CCTV of the ATM.
For 2000 rupee note:
- Micro letters ‘RBI’ and ‘2000’.
- Color shift security thread,
- The numeral panel grows big from left to right.
- Seven angular lines in raised print.
For 500 rupee note:
- Micro letters ‘RBI’ and ‘500’.
- Color shift security thread,
- The numeral panel grows big from left to right.
- Five angular lines in raised print.
Am I liable, for possessing any forged currency, unknowingly?
In such cases will you be liable under Section 498B of the IPC?
No, you won’t be liable. In the case of Umashanker vs. the State of Chhattisgarh, the Supreme Court held that men’s rea is very essential to prove an economic offense under Section 489.
Where to file a complaint if someone passes me off their fake currency?
To avoid this, Detection Impounding Counterfeit Notes you need to go to your nearest police station and report the matter to the police who will register an FIR against the accused for violation of Section 489 of the IPC. Then the police will carry out further investigation, and the court will prosecute him.
The problem of Cross-Border trafficking of fake currency notes
To deal with the problem of cross-border trafficking of fake currency, India signed the International Convention for the Suppression of Counterfeiting Currency in 1929. The Financial Action Task Force is the statutory body that frames policies to prevent illegal trafficking.
- Management of currency
- For details regarding the management of currency please read
- Money laundering
- For details regarding money laundering laws in India please read
Conclusion
Counterfeiting of notes is a serious problem for the economy. Due to this every year, the country loses billions of rupees. RBI and the Union Government constantly work towards curbing this menace by adding additional security features to the notes and being vigilant at the borders to prevent the neighboring country from draining fake currency into our economy. RBI and the government have adopted a policy of ‘Zero tolerance’ to ensure the integrity of the notes in circulation.