Thursday, 3 December 2015

Bank Exam Notes - Currency Notes

Star series Notes
  • RBI commenced the issuance of star series banknotes in the domination of Rs.10, Rs.20 and Rs.50 during 2006-07 (Rs.100 in2009).
  • The star series bank notes look exactly like the earlier banknotes in the Mahatma Gandhi series but have an additional character, viz., (star) in the number Panel packets with star series notes contain, as usual, 100 pieces, though not in serial order.
  • The star series system helps in streamlining the procedure at the printing presses and reducing manpower deployed in replacement activity. The bands of fresh mode note packets containing star series numbered note/s indicate the presence of such notes in the packets.
Know more about about indian Money System
Notes bearing message of political character  
These cease to be legal tender as per provisions of legal Tender ( Inscribed Notes) Act 1964.

Counterfeit Notes
The definition of ‘counterfeiting’ is as per the Indian Panel Code and covers currency notes issued by a foreign government authority as well.

The Counterfeit notes can be impounded by
(i) All branches of public sector banks, private sector banks and foregn banks, Co-operative Banks, Private Rural Banks
(ii) All Treasuries and Sub-Treasuries
(iii) Issue Offices of RBI

1. Detection of counterfeit notes should be at the back office/currency chest only. Banknotes when tendered over the counters may be checked for arithmetical accuracy and other deficiencies like whether there are mutilated notes, and appropriate credit passed on to the account or value in exchange given.

2. Thereafter the notes should be passed over to the back office/ currency chest, as the case may be, for detailed verification and authentication through machines

3. The banknotes categorized as suspect during machine processing to be subjected to manual verification for checking their authenticity.

4. Counterfeit notes should not be returned to the tenderer or destroyed by braches / treasuries. Failure to impound counterfeit notes detected at their end will be construed as wilful involvement of the bank concerned, in circulating counterfeit notes and penalty will be imposed.

Impounding of counterfeit notes:
There will not be any requirement to issue acknowledgement to the tenderer. Nottice to this effect should be displayed prominently at the offices/ branches for the information of the public.

Reporting to police and other bodies
1. For cases of detection of counterfeit notes upto 4 pieces, in a single transaction, a consolidated report should be sent by the Nodal Bank Officer to the police authorities or the Nodal police Station, along with the suspect counterfeit notes, at the end of the month.

2. For cases of detection of counterfeit notes of 5 or more pieces, in a single transaction, the notes should be forwarded by the Nodal Bank Officer to the local police authorities or the Nodal police Station for investigation by filing FIR.

Reporting :  
  • A copy of the monthly consolidated report/FIR shall be sent to the Forget Note Vigilance Cell constituted at the Head office of the bank. In the case of the treasury, it should be sent to Issue office of RBI.
  • The data on detection of counterfeit Indian notes at bank branches & treasuries should be included in the monthly Returns forwarded to RBI.
  • Suspected Foreign Currency notes: If such notes are received for opinion, from the police and government agencies, etc., they should be advised to forward the case to the Interpol Wing of the CBI, New Deihi.
  • Examination of the Banknotes before issuing over Counters, Feeding ATMs and Remitting to Issue Offices of the Reserve Bank
  • All bank branches should re-align their cash management in such a manner so as ensure that cash receipts in the denominations of Rs.100 and above are not put into re-circulation without the notes being machine processed for authenticity.
  • Dispensation of counterfeit notes through the ATMs would be construed as an attempt to circulate the counterfeit notes by the bank concerned.
  • Detection of counterfeits in chest remittances is also liable to be construed as wilful involvement of the chest braches concerned in circulating counterfeit Notes and may attract special investigation by police authorities.
Designating Nodal Bank Officers:
  • Each bank should designate Nodal Bank Officers, district wise. All cases of reporting of counterfeit note detection should be through Nodal Bank Officers.
Forged Notes Vigilance Cell at Head Office:
  • Each Bank shall establish at its Head Office, a Forged Note Vigilance Cell.
  • The Cell shall submit status report on a quarterly basis to RBI.
Provision of Ultra-Violent Lamp and Other Infrastructure :
All bank branches/identified back offices should be equipped with ultra-violet lamps/other appropriate banknote sorting / detection machines.
In addition, all currency chest branches should be equipped with verification, processing and sorting machines. Such machines should conform to the guidelines on ‘Note Authentication and Fitness Sorting Parameters’ prescribed by RBI.

Counting machines:
Banks should also consider providing at least one counting machine (with dual display facility) for public use at the counter.

Reporting of Data to RBI  
1) Data on counterfeit notes detected by all the branches of the bank shall be reported in the prescribed format, on a monthly Basis (by 7th of the next month).
2) Principal Officers of banks are also required to report information on cash transaction where forged notes have been used as genuine note to FIU-IND, within seven working days. A “nil “ report may be sent in case no counterfeit has been detected during the month.

  1. The banks will be compensated by RBI to the extent of 25% of the notional value of the counterfeit notes of Rs. 100 denomination and above, detected and reported to RBI and police authorities.
  2. Claims should be made through the Forged Note. Vigilance Cell of the banks on a monthly basis through email within fifteen days of the secceeding month.
  3. Reimbursement will be done by RBI, on a quarterly basis.
Counterfeit Notes received from Police:
  • Counterfeit Notes received back from the police authorities / courts may be carefully preserved in the safe custody.
  • These Notes should be subjected to verification on a half-yearly basis (on 31st March and 30th September) by the Officer-in-Charge of the bank office concerned.
  • They should be preserved for a period of 3 years from the date receipt from the police authorities. They may thereafter be sent to RBI with full details.
  • Counterfeit notes, which are the subject matter of litigation in the court of law should be preserved with the branch concerned for 3 years after conclusion of the court case.

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