And what makes it even worse is that a bank has the right to impound it as soon as it is brought to its notice.
You must be thinking that there is no way a counterfeit currency can be sitting neatly in your wallet, right? Well, think again.
The government in July 2017 had informed the parliament that fake currency having a face-value of over Rs 11.23 crore was detected in 29 states post demonetisation.
The Reserve Bank of India (RBI) in its latest annual report said that during 2016-17, 762,072 pieces of counterfeit notes were detected in the banking system, of which 95.7 percent were found by commercial banks. This was 20.4 percent higher than what was detected in the previous year.
So do you still think there is no chance of you having a fake note? Read on to find out what the RBI rules state regarding counterfeit currency and how you can identify such notes.
At a bank counter: While depositing cash, if the bank is able to establish that the notes are fake, these will not be credited to the customer’s account. What is more, the note will not be returned to the tenderer.
As per RBI rules, if as a customer insists that the fake note be returned to them, it will be taken as a failure on the part of the bank to impound the note detected at their end and will be construed as wilful involvement by the bank. And that is not all, the bank will be penalised as well.
After impounding, the bank has to issue an acknowledgement of the transaction in a prescribed format which has to be authenticated by the cashier and tenderer (see below).
The person tendering has the right to demand a receipt but at the same time can refuse to sign it. The RBI rules say that the receipt is to be issued even in cases where the tenderer is unwilling to countersign it.
The bank will also have to stamp “counterfeit note” on the currency and once impounded, it has to be recorded in their registers. Such counterfeits notes, after being impounded, are then sent to the police. If the tenderer has more than five fake notes, the bank has to file a FIR for an investigation.
With a view to facilitating the detection of counterfeit notes, all bank branches have to be equipped with ultra-violet light devices and other appropriate currency sorting or detection machines.
Fake currency at ATMs : RBI has instructed banks that it is imperative to put in place adequate safeguards and checks before loading ATMs with notes, as any dispensation of counterfeit currency through ATMs would be construed as an attempt to circulate such notes by the bank.
If you still get a fake note from an ATM, there’s unfortunately not much that can be done. In this case, as well, there are no explicit guidelines for the customer to claim new notes in lieu of fake ones received from ATMs. If you do get such a note from an ATM, what you can do is hold them up so that it gets recorded on the CCTV camera, register complaint with the guard stationed at that ATM, and simultaneously raise a complaint with the bank, RBI, and the police. Also, keep the ATM receipt safe as it may help in any investigations that may ensue. If during the investigation, it is proved that the fake notes were dispensed from the ATM, the customer has a fair chance to get compensation.
Since there is no easy recourse for someone who accidentally ends up with a fake note, it is important to be vigilant. One way of doing this is to educate yourself about the features of a currency note. Here’s how you can identify the security features of the new Rs 2000 and Rs 500 notes.
” RBI had introduced these newly designed bank notes as part of its Mahatma Gandhi (New) Series.
” The new denomination has a motif of the Mangalyaan, the country’s first venture in interplanetary space, on the reverse side.
” The base colour of the note is magenta. The note has other designs, geometric patterns aligning with the overall colour scheme, both on the obverse and reverse.
” The size of the new note is 66mm x 166mm.
To know the security features of Rs 2000 note, click here
” The new Rs 500 note in the Mahatma Gandhi (New) Series are different in colour, size, theme, location of security features and design elements.
” The size of the new note is 66mm x 150mm.
” The colour of the notes is stone grey and has an image of the Red Fort on the reverse side.
To know the security features of Rs 500 note, click