Post by Sapphire Capital on Aug 11, 2008 23:30:32 GMT 4
RBI concerned over inflow of fake currency
Ira Duggal and Kamal Khan
Monday, August 11, 2008 (Mumbai)
Next time you get cash from a cash counter be sure to take a close look for the menace of fake currency seems to picking up.
Ever since more than Rs 2 crore worth of fake currency was found at a State Bank of India branch in Uttar Pradesh, the RBI and the state economic offences wing have stepped into action.
Over the weekend the RBI conducted searches across 600 bank branches in the Uttar Pradesh belt, the central bank is expected to continue with its surprise searches over the next few days. It has also asked banks to conduct surprise checks across their treasuries.
Sources at the RBI say that "the central bank is actively working with the Uttar Pradesh police to try and identify and isolate the fake currency sources and ensure that the problem remains localized."
While the RBI maintains that the nuisance of fake currency is restricted to individual instances, the economic offenses wing is a little more concerned about fake money flowing in from across the border particularly Nepal and Pakistan, as part of suspected terrorist activities.
According to RBI estimates the overall quantum of fake money in circulation remains at only 0.004 per cent of total money in circulation.
But an estimate put out by economic offenses wing suggests that there has been a 1.8 per cent increase in the quantum of fake money in circulation since June of 2007.
Police sources estimate that in the last one month alone close to Rs 50 crore worth of fake currency is suspected to have come across the borders.
"What we have learnt is that large consignments of fake notes have come in and they have seeped into the areas banks," said B P Ashok, S P, Agra.
While the RBI says that rising instances of fake currency is not a systemic issue yet they have asked all entities that deal in cash transactions including railways, buses operations, bank and currency exchange counters to careful scan and monitor the cash they receive and give out to prevent the problem from spreading across state borders.
Ira Duggal and Kamal Khan
Monday, August 11, 2008 (Mumbai)
Next time you get cash from a cash counter be sure to take a close look for the menace of fake currency seems to picking up.
Ever since more than Rs 2 crore worth of fake currency was found at a State Bank of India branch in Uttar Pradesh, the RBI and the state economic offences wing have stepped into action.
Over the weekend the RBI conducted searches across 600 bank branches in the Uttar Pradesh belt, the central bank is expected to continue with its surprise searches over the next few days. It has also asked banks to conduct surprise checks across their treasuries.
Sources at the RBI say that "the central bank is actively working with the Uttar Pradesh police to try and identify and isolate the fake currency sources and ensure that the problem remains localized."
While the RBI maintains that the nuisance of fake currency is restricted to individual instances, the economic offenses wing is a little more concerned about fake money flowing in from across the border particularly Nepal and Pakistan, as part of suspected terrorist activities.
According to RBI estimates the overall quantum of fake money in circulation remains at only 0.004 per cent of total money in circulation.
But an estimate put out by economic offenses wing suggests that there has been a 1.8 per cent increase in the quantum of fake money in circulation since June of 2007.
Police sources estimate that in the last one month alone close to Rs 50 crore worth of fake currency is suspected to have come across the borders.
"What we have learnt is that large consignments of fake notes have come in and they have seeped into the areas banks," said B P Ashok, S P, Agra.
While the RBI says that rising instances of fake currency is not a systemic issue yet they have asked all entities that deal in cash transactions including railways, buses operations, bank and currency exchange counters to careful scan and monitor the cash they receive and give out to prevent the problem from spreading across state borders.