Lok Sabha Question No. 579 (UNSTARRED), answered on 2016-02-26
Subject: Counterfeit Currency through Banking Channels
Ministry: FINANCE
Asked by: RAYAPATI SAMBASIVA RAO, VISHNU DAYAL RAM

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

LOK SABHA UNSTARRED QUESTION NO 579

TO BE ANSWERED ON THE 26 th FEBRUARY, 2016 / PHALGUNA 07, 1937 (SAKA)

## COUNTERFEIT CURRENCY THROUGH BANKING CHANNELS

## 579 . SHRI RAYAPATI SAMBASIVARAO: SHRI VISHNU DAYAL RAM:

Will the Minister of FINANCE be pleased to state:

- (a) whether a large number of incidents of circulation of counterfeit currency through banking channels including ATMs is reported in the country;
- (b) if so, the details thereof during the last three years and the current year;
- (c) whether the Government has taken action against the concerned banks and their employees in this regard;
- (d) if so, the details thereof along with the loss suffered by country's economy due to circulation of counterfeit currency; and
- (e) the steps taken by the Government to check recurrence of such incidents in future?

## ANSWER MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI JAYANT SINHA)

(a) & (b): Reserve Bank of India (RBI) does not have information about large number of incidents of circulation of counterfeit currency through banking channels including Automated Teller Machines (ATMs) in the country. However, data regarding year wise receipt of complaints of alleged dispensation of Fake Indian Currency Note (FICN) through ATMs, from the year 2011 onwards, is given below.

| Calendar Year    |   No. of complaints |
|------------------|---------------------|
| 2011             |                   4 |
| 2012             |                  12 |
| 2013             |                  11 |
| 2014             |                   9 |
| 2015             |                   9 |
| 2016 (till date) |                   2 |

The data regarding FICN detected and impounded in the banking channel during the last 4 calendar years is given as under: -

| Calendar year-wise data of detection of FICN in the banking channel   |
|-----------------------------------------------------------------------|

| (1)                  | (2)                            | (3)                                            |
|----------------------|--------------------------------|------------------------------------------------|
| Calendar Year        | No. of Pieces of FICN detected | Notional Value of FICN detected (Rs. in crore) |
| 2012                 | 500,024                        | 24.85                                          |
| 2013                 | 481,670                        | 24.46                                          |
| 2014                 | 572,913                        | 28.28                                          |
| 2015 (Jan-Sept 2015) | 471,307                        | 21.62                                          |

(c) & (d): In all the cases of complaints of alleged receipt of fake notes through ATMs, the matter was taken up with the bank concerned by RBI for investigation of the facts. However, in none of the cases it was proved that the fake notes were dispensed by their ATMs. The notional value of counterfeit notes detected in the banking channel is indicated at column (3) of the above table.

(e): RBI has advised banks that banknotes tendered over the counter / received directly at the back office / currency chest through bulk tenders should be examined for authenticity through machines. Further, the RBI has also advised banks that In order to obviate complaints regarding receipt of counterfeit notes through ATMs, and to curb circulation of counterfeits, it is imperative to put in place adequate safeguards/checks before loading ATMs with notes and also that dispensation of counterfeit notes through the ATMs would be construed as an attempt to circulate the counterfeit notes by the bank concerned.

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