A recent press report said that the failure of the majority of the banks to detect the counterfeit notes is currently creating threat of counterfeit currency. The Reserve Bank of India said that it would take urgent steps in order to sensitize those within the system on the issue.
In his statement Dr. D. Subbarao, Governor of the Reserve Bank of India told that there were only one or two banks which report about the counterfeit notes that were detected. It means that there are many other banks which do not pay attention to detect and report about the detection of the fake currency notes.
He also said that he has stressed on the importance of detecting the counterfeit notes and the menace created by counterfeit currency notes to the bankers. In turn the bankers have also assured that they would take necessary steps in order to sensitize those within the system and by the end of 2010 20 per cent of the front – office personnel would be given training on how to detect and report these counterfeit currency notes. Besides, it is very essential to create awareness about the counterfeit currency notes to the customers also.
Recently banks have asked the RBI to take a break from its monetary tightening cycle which has made home loan and other loans very expensive.