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Counterfeit banknotes detected during FY 2010-11 were higher in magnitude at 435,607 pieces, against 401,476 in the previous year, on account of heightened awareness amongst banks and increased use of Note Sorting Machines (NSMs).
Almost 90 per cent of the counterfeit notes (or 390,372 pieces) identified were detected at bank branches, reflecting increased use of NSMs. Last year, bank branches detected 348,856 counterfeit notes.
As on April 2011, banks have installed 4,091 NSMs in the branches having average daily cash receipts of Rs 50 lakh and above. Further, the banks have also made arrangements for issue of machine processed notes for another 1,823 branches.
With banks stepping up use of NSMs, the detection of counterfeit notes at the RBI's end came down to 45,235 pieces, against 52,620 pieces last year, the RBI said in its annual report.
Dealing with counterfeit currency
In a bid to rationalise the procedure with regard to the filing of FIR on detection of forged notes, the Central Government has taken an in-principle decision to consider designating one nodal police station at each district for registration of cases of forged note offences.
Banks would designate one nodal officer in a district with responsibility of registering such cases with the police.
The nodal officer of the bank will register a single report to a designated police station with detailed information where recovery of forged notes is 1 piece to 4 pieces in a single transaction. In case of recovery of 5 or more pieces in a single transaction separate FIR would be filed. While several states have designated nodal police stations, simplification of reporting system is under consideration of the Central Government.
Cotton-based Bank Notes
The Reserve Bank continued with its efforts to introduce polymer / plastic banknotes in the denomination of Rs 10, on a “field trial” basis, in select locations of the country. While the process relating to the “field trial” is under progress, the RBI commissioned a study on the “environmental impact (carbon footprint) of cotton-based banknotes vis-a-vis polymer-based alternative”.
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