Categories: Bank News

What bank can do if you deposit a fake note in the bank?

Fake Currency Note is a term used to refer to counterfeit currency notes. The fraudster may print imitation (Counterfeit) currency notes and cheat unsuspecting individuals by handing over them as real money.

Authority to impound counterfeit notes:

The Counterfeit Notes can be impounded by all Banks, Issue Offices of Reserve Bank of India. The notes deposited by any individual at the bank will be examined for authenticity through machines. Similarly, banknotes received directly at the back office / currency chest through bulk tenders will also be examined through machines.

The counterfeit note detected over the counter of the bank or at the back-office / currency chest will not be returned back to the depositors nor credited to their account. In no case, the Counterfeit Notes shall be returned to the tenderer or destroyed by the bank branches. Failure of the banks to impound Counterfeit Notes detected at their end will be construed as wilful involvement of the bank concerned in circulating Counterfeit Notes and penalty will be imposed by the regulator.

Notes determined as counterfeit shall be stamped as “COUNTERFEIT NOTE” and shall be recorded under authentication in a separate register maintained by the bank. The receipt, in running serial numbers, shall be authenticated by the cashier and tenderer. The receipt is to be issued even in cases where the tenderer is unwilling to countersign it.

Reporting to Police and other bodies:

In the cases where Counterfeit Notes up to four (04) pieces in a single transaction, a consolidated report in the prescribed format will be sent by the designated Nodal Bank Officer of the bank to the police authorities or the Nodal Police Station, along with the suspect Counterfeit Notes, at the end of the month. For cases of detection of Counterfeit Notes of five (05) or more pieces in a single transaction, the designated Nodal Bank Officer shall file FIR and the Counterfeit Notes impounded shall be forwarded immediately to the local police authorities or the Nodal Police Station for investigation. Acknowledgement of the police authorities concerned has to be obtained for note/s forwarded to them (both for consolidated monthly statement and for filing of FIR).

How to spot fake Indian currency notes?

If you have a fake note, you might be able to spot it by noticing smudged ink or broken lines. Thus, look closely at the printed material on a note to verify. Details of security features of the New Design banknotes of ₹2000, ₹500, ₹200, ₹100, ₹50, ₹20 and ₹10 are available at the link https://paisaboltahai.rbi.org.in.

Foreign currency notes:

The definition of ‘counterfeiting’ in the Indian Penal Code covers currency notes issued by a foreign government authority as well. In case of suspected foreign currency notes received for an opinion from the police and government agencies, etc., they shall be advised to forward the case to the Interpol Wing of the CBI, New Delhi after prior consultation with them.

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Surendra Naik

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Surendra Naik

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