RBI panels to tackle fake notes

Staff Reporter

High incidence of circulation of fake currency in nine districts

State-level panel to be headed by an Addl. DGP

District-level panel to be headed by the Collector

Hyderabad: Perturbed over high incidents of circulation of counterfeit currency in nine districts of the State, the Reserve Bank of India (RBI) has constituted a State and district level committees to review the cases.

Srikakulam, East and West Godavari, Krishna, Guntur, Chittoor, Kurnool, Mahabubnagar and Hyderabad have reported high incidence of detection and seizure of counterfeit notes.

The State-level committee comprising six members will be headed by an officer in the rank of Additional DGP (Law and order).

The other members will be drawn from RBI, Intelligence Bureau, Intelligence Branch, CID and State Police.

The district-level committee will have the Collector as chairman and four other members. The committees will deal with forged notes and circulation.

Three months

The committees will meet once in three months to share information, review the position of fake notes detected by the banks and cases registered with police to take measures to curb its circulation. The RBI in a circular issued last year expressed serious concern over the incidents of detection of forged notes in various parts of the country showing increasing trend.

Steady increase

Talking to The Hindu, N. Krishna Mohan, Regional Director of RBI, said the number of fake currency notes have been steadily increasing over the last three years.

He also pointed out that the RBI had made it mandatory for banks in the State to have Forged Notes Vigilance Cell to detect counterfeit currency.

Citing the percentage of fake currency notes to be miniscule, Dr. Mohan said that it posed a serious threat.

The number of fake notes in circulation had grown to four lakh among the 50 billion pieces of currency, which were currently in circulation, he said.

However, with the RBI planning to introduce plastic notes of Rs.10 denomination on an experimental basis in select areas, there would be scope for adding additional security features to further curb counterfeiting, added Dr. Mohan.

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