The Hindu : Andhra Pradesh News : RBI worried over fake notes

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Andhra Pradesh

Andhra Pradesh

RBI worried over fake notes

S. Harpal Singh

About 3.8 lakh fake notes detected this year

Economy can come under increased threat: RBI official
RBI has over 50 billion pieces of currency in circulation

ADILABAD: The current growth percentage of counterfeit currency detection has become a major cause of worry for the Reserve Bank of India (RBI) as it reveals the growing severity of the problem.

“At over 100 per cent growth year on year, the incidence of fake note detection can only mean an increasingly alarming situation. The nation’s economy can come under increased threat of destabilisation due to this phenomenon,” observed N. Krishna Mohan, Reserve Bank of India’s Hyderabad Regional Director, while going over the subject.

The official spoke to The Hindu on Saturday during his visit here in connection with the platinum jubilee celebrations of the RBI.

He said about 3.8 lakh counterfeit notes were detected this year against 1.8 lakh last year.

Eight per million

The RBI had over 50 billion pieces of currency notes in circulation and the number of fake notes that were detected come only up to eight pieces per million of genuine notes in circulation.

“This shows that the problem may not be so acute yet, the challenge remains as the issue has not been studied properly and there is insufficient data,” Dr. Krishna Mohan said.

The involvement of a plethora of agencies including the banks, police, intelligence wings and the unlikely ones like the security forces manning the nation’s land and sea borders in curbing circulation of counterfeit currency makes it perhaps the biggest of all the governmental efforts. A State-level committee on detection/seizure of fake Indian currency notes liaises with the district-level committees now.

New initiatives

Referring to new initiatives that the RBI was planning, Dr. Krishna Mohan said a media consultant would be hired to devise ways for creating awareness among general public. “The consultant will develop awareness material in user friendly manner,” he said.

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