Scrapping notes a blow to fake currency

The decision to do away with Rs 500 and Rs 1,000 currency note will help tackle the acute problem of counterfeit currency

GN Bureau | November 10, 2016


#Rs1000   #Bank Notes   #Black Money   #Cashless Economy   #Rs500   #Corruption  


The government’s announcement to scrap Rs 500 and 1000 currency notes will go a long way towards bringing halt to the circulation of counterfeit currency in the country. The common man finds it virtually impossible to distinguish between a genuine currency note and a fake one. Most of the times it takes the expert eye of a bank teller to spot a fake one. We are reissuing a story on counterfeit money that appeared in November 16-30, 2014 issue.


                                                         Fake in India: a counterfeit economy

Sahil got a shock when the bank employee told him that one of the 20 notes of Rs 500 he had brought to deposit was a counterfeit. He was also embarrassed – at being fooled as well as being possibly taken for a criminal. He first argued that he did not know, a common man like him could not be expected to cross-check all the security parameters (there are 14 of them, to be precise), and the bank should accept the note. The Safdarjung Enclave branch of Central Bank of India refused.

Sahil was lucky, though. His father, who runs a small confectionery shop in Arjun Nagar of south Delhi, managed to catch the customer who had passed the dubious note on to him. Now was the customer’s turn to be shocked and embarrassed, but he changed the note.

In the process, however, the dubious currency note won another life.

It had started its journey, most likely from a sophisticated printing press in a neighbouring country. It had crossed the border possibly near Malda in West Bengal – as part of a bunch of fake notes with a total face value of Rs10-15 lakh in a gunny sack thrown in a nullah from one side of the border and picked up on the other side. Now it would continue to circulate, changing hands as a genuine one and harming the economy. Travelling alone, it cannot be captured by any law enforcement agency. The only way to catch it and put it out of business is when it comes to a bank counter.

That is why the Reserve Bank of India (RBI) has asked banks to net fake notes, not reject them. It wants banks to accept all cash, without bothering about veracity, and give due credit to the customer. Counterfeits are to be filtered out at the back office. The RBI directive says, “In no case, the counterfeit notes should be returned to the tenderer.”

Read complete story here

Comments

 

Other News

Why do we need Aadhaar?

 Aadhaar is arguably one of the most convoluted public policy interventions in India’s history. It has been more than eight years, yet there is little clarity on the exact purpose of the biometric-based unique identification project.  Let me take you through an event which I witne

AAI signs MoU with Daman and Diu admin for maintenance of Diu airport

The airports authority of India (AAI), a Miniratna PSU, has undertaken operation, development and maintenance of Diu airport from Diu administration.    A memorandum of understanding demonstrating the responsibilities was inked on March 20 between the union terri

PSU performance: Better than expected

Central public sector enterprises (CPSEs) have done quite well despite facing headwinds, according to the Public Enterprises Survey (2015-16) that was tabled in parliament on March 21. The net worth of all the CPSEs have gone up and the overall net profit has zoomed. Their contribution to the cen

National Health Policy: Old prescription, new date

After much discussion and pondering over for more than two years, the cabinet has approved a new National Health Policy, scrapping the old one which was formulated in 2002. The government aims to increase the public health expenditure to 2.5% of the GDP by 2025. The policy formulated in 2002 aimed

It’s traumatic, says African student

  “We have requested more security from the government of India and the Uttar Pradesh government,” said Abdou Ibrahim, senior adviser, Association of African Students (AASI)  following an attack on four students from Africa in Greater Noida, Uttar Pradesh. &n

Is the BJP trying to split the Biju Janata Dal (BJD)?

Is the BJP trying to split the Biju Janata Dal (BJD)?

Video

यूपी में नकल करने वालों की अब खैर नहीं

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter