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RBI: Latest steps to curb fake currency introduced

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The nuisance of fake currency has been on the rise recently and our Reserve Bank of India (RBI) has rolled out a new set of reforms to curb the same. The most affected notes of the menace are the Rs 1,000 and Rs 500 denomination and the RBI has introduced a 7 step security measure as well as a fresh numbering system. This whole process was started on Sunday, the 6th of December, 2015.

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This new system of numbering shall be introduced along with the subsidiary organisation Bharatiya Note Mudran Pvt. Ltd (BRBNMPL) and the Security Printing and Minting Corporation, which is a state-run agency. These reforms will be brought mainstream by May, next year and shall also be extended to all denominations of the currency.

The RBI has also moved for the impounding of fake notes. It has ordered the banks to stamp the fake currency as “Counterfeit Currency” and the same shall be cooped up by the RBI. Penal sanction has been threatened to the banks that shall not follow this procedure. The nodal agency of the government responsible for investigation of fake currency is the National Investigation Agency (NIA).

As per the data released by the National Crime Records Bureau, Gujarat is considered to be the “safest” state to circulate fake currency. With its proximity to the border with Pakistan, it is conjectured that such fake currency is injected by Pakistan’s Inter-service Intelligence (ISI).

The correct procedure to be followed by anyone who receives a fake note is to register an FIR at the nearest Police Station. This FIR shall be against the person who gave him such fake currency. Also, if fake currency is received from an ATM, then the FIR should be against that bank. The RBI is authorised to penalise such banks if they are found harbouring fake currency.