It has been reported that Reserve bank of India is quite concerned regarding the fake currencies. RBI has warned the vendors that it would have to go in for higher indigenization, if they will not follow KYC norms. It has been also reported that the currency papers and security ink produced by the international suppliers are falling in wrong hands that is leading to the increase in production of fake currencies.
With the help of the fine quality resources the counterfeiters are able to generate good quality of fake currency. So it is necessary to find out from where they are getting the resources and what is the role of vendors in perpetration of these illegal activities.
RBI stated that they need vendors help to find out who has supplied the resources. Finding a long-term solution to this menace may also require close cross-border cooperation between various countries. Deputy Governor of the RBI said that he wanted manufactures, vendors of the banknote industry to come up with ideas on not only reducing the cost of paper, ink, and machines, but also for enhancing the durability of the banknotes through technological innovations.