The Reserve Bank of India (RBI) with the Surat police is set to launch a drive to counteract the circulation counterfeit currency in the system.
The drive was called following a recent review meeting of the bank officials, where the district collector Dilip Rawal, emphasised the need for same considering the rising circulation of the counterfeit currency. "We will try and catch the culprits with the help of closed-circuit cameras installed at several ATMs and branches of various banks," he said.
Rawal added, "It's been observed that the fake currency racket operators target their victims mostly between the 1st and 12th of every month, when transaction in the banks is at the maximum."
Over past three months, RBI seized as many as 63 fake currency notes, which were in the denominations of Rs 500, Rs 50 and Rs 100. Further, in a RBI banknote supply to the ICICI Bank, as many as 36 counterfeit notes in the denomination of Rs 1,000, 540 notes in denomination of Rs 500 and 340 notes in denomination of Rs 100 were found.
In an attempt to ward off the fake currency entering the system, ICICI recently installed a state-of-the-art machine for detecting any fake currency.
The central bank has also taken steps like installation of currency verification and processing machines at its various offices, with the processing capacity varying from 50,000 to 60,000 pieces per hour.
Under Sections 489A to 489E of the Indian Penal Code, counterfeiting banknotes, use/ possession of forged or counterfeit banknotes banknote and making (or possession) of documents, instruments or materials for forging or counterfeiting banknotes are punishable offences in the Courts of Law by fine or imprisonment (ranging from seven years to life imprisonment) or both, depending on the offence.
The Reserve Bank of India derives its currency management role under the Reserve Bank of India Act, 1934.
Under Section 25 of RBI Act, 1934 the Central Government must approve the design of banknotes by RBI.