Why you need to be doubly careful with Rs 1000 notes

The fake note menace is only increasing. There is no stopping it.Earlier, spurious notes were more in Rs 100 and Rs 500 denominations. This has taken a turn for the worst with the circulation of counterfeits even in the very high denominations like Rs 1,000 becoming more widespread.One reason for this could be high inflation, which has resulted in increased usage of higher denomination notes, thus making them a target.

The Reserve Bank of India's annual report says 98,459 counterfeit notes of Rs 1,000 denomination were detected during 2012-13, compared with 83,280 in the previous year. Now that's definitely bad news. But there is also good news -- the number of total fake notes detected in the system during the year has decreased.

 Why you need to be doubly careful with Rs 1000 notesBut unlike in the past, this time it was the bank's note sorting machines which were able to detect the fake currency notes in the system. Banks have been warned by the apex bank to impound and report all fake notes detected by them.

So, what happens if you are at a bank branch to deposit some cash and the banker (or the counterfeit note identification machine) spots a fake note?

Once the bank identifies (after examination of various safety features) the note is indeed counterfeit, they put a stamp on the note saying COUNTERFEIT BANKNOTE IMPOUNDED. The official enters the details of the note in a separate register.

After that the banker gives you an acknowledgement receipt. You are expected to countersign the receipt. Even if you are unwilling to countersign the receipt, the bank will still issue you an acknowledge receipt.

If there are up to four fake notes detected, in a single transaction, then the bank sends a report to the local police authorities along with the notes. The report will carry your name, along with other details.

If five or more fake notes are detected in a single transaction, the fake notes are forwarded to the local police station. But, that's not all. A first information report (FIR) is also filed for further investigation. It too mentions your name and address, along with details or denomination and number of pieces of fake notes.

The bank will not return the note to you or give you a compensation for the note you just lost.So you simply lose the money.

The sad part is there is nothing much you can do about it, even it is not your mistake.

But, you could be cautious and learn how to identify a fake note. To know more about how to identify a fake Rs 1000 note visit this RBI page.

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Updated Date: Dec 21, 2014 03:35:43 IST