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Fake ways to dispose off counterfeit notes return

Once upon a time, we tried devious ways to palm off fake notes to others, if we were unlucky to get one.

Around two years back, Reserve Bank of India granted some benefit (of doubt) to aam aadmi, in this matter of counterfeit notes. Tragically, this relief now stands withdrawn.

In June 2013, Reserve Bank of India had issued a notification on 'Detection and Reporting of Counterfeit Notes'. 

As per the same, banks were to "streamline their system in a manner which will make them bear the risk of counterfeit banknotes rather than the common man who unknowingly comes in possession of such notes".

Besides, RBI had also agreed to provide some compensation to banks, for the counterfeit notes detected by them. Accordingly, RBI were to pay 25% of the loss incurred by the banks in respect of fake banknotes of Rs.100 and above.

The details, in this regard, were covered in my blog post What If You Get A Fake Note?.

This, sadly, is now history.

Beware! It is NOW your headache, if you are lured into accepting fake notes.

Last week, on August 27th, RBI issued a new notification on Detection of Counterfeit Notes

The procedure, for detection of counterfeit notes, has been reviewed and modified as detailed below:

1. Earlier, banknotes tendered at the counter were to be checked only for arithmetical accuracy and mutilation, if any and the appropriate credit was given to the customer. The detailed verification and authentication was to be done at the back office.

Henceforth, banks will examine your notes for authenticity too, through machines. Fake notes, if any, would be impounded and stamped "COUNTERFEIT NOTE".

Similarly, counterfeit notes received directly at the back office / currency chest would also be stamped fake and impounded.

2. You will NOT RECEIVE ANY CREDIT for the fake notes found in the cash being deposited by you.

3. Only an acknowledgement receipt, authenticated by the cashier, would be issued to you; even if you refuse to countersign the same.

4. As such, RBI's earlier policy to compensate 25% of the bank's loss, will no longer be applicable.

5. A penalty of 100% of the notional value of such fake notes plus the recovery of loss would be imposed on the banks, if any counterfeit notes are found in their currency chest balance or in the soiled notes remitted by them.  

6. Banks have to continue with the policies laid down in respect of reporting to the police and examination of notes before issuing them over the counter or at the ATMs.

I wonder why RBI is pushing the unsuspecting common man, who unknowingly comes in possession of such notes, towards crime. Now, he will pass it on to another unsuspecting fellow. Or drop it in the collection box at some religious place. He will never report it to the police. All these are criminal acts.

As such, if we have to avoid all this trouble and trauma, we have to become doubly vigilant and not accept any counterfeit banknotes.

In this regards, RBI has enhanced the security features on the notes printed by them. 

Further, it has put up a dedicated website — https://paisaboltahai.rbi.org.in/ — for your ready reference, that nicely displays all these security aspects. 

I had earlier explained How To Spot A Fake Rs.500 Banknote?Please visit this website to familiarize yourself with the security features on the notes of other denominations too, such as Rs.10, Rs.20, Rs.50, Rs.100 and Rs.1000. 

In short, the onus is on us.

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