RBI issues alert over counterfeit notes at ATMs

[ 9 Jan, 2007 0106hrs IST TIMES NEWS NETWORK ]

MUMBAI: Withdrawing cash from an automated teller machine (ATM)? Don’t forget to check if the notes are genuine. Concerned about the increasing complaints of counterfeit notes being dispensed through ATMs, the Reserve Bank of India (RBI) has asked banks to ensure that fake notes are not given through ATMs or across exchange counters.

Warning customers against the circulation of fake notes, the RBI has made it clear to banks that disbursement of counterfeit currency through ATMs would be treated as an attempt to circulate forged notes by the bank concerned.

According to the RBI annual report, there were Rs 1,76,75,150 fake notes in circulation in 2005-’06 as against Rs 2,43,79,460 notes in 2004-’05. Although the total value of fake currency in circulation has dipped, bankers say many cases go unreported. The report has revealed a dip in the number of fake Rs 100 and Rs 500 notes, but a rise in similar Rs 1,000 notes.

Reacting to the circular, a banker said, “There is a counterfeit note detection system in place already. The sources of money for banks are cash deposited by the public, cash drawn from the RBI and the currency chest. At every step, there is a system in place to check the genuineness of the notes. However, whether that system is fool-proof is open to debate.’’

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