The steps taken by the Government to curb circulation of Fake Indian Currency Notes (FICN) in the country include stepping up of vigilance by the Border Security Force and Custom authorities to prevent smuggling of fake notes; dissemination of information on security features through print and electronic media and formation of Forged Note Vigilance Cells in all the Head Offices of the banks. Additional security features have also been incorporated in the bank notes in 2005 to make counterfeiting very difficult. To strengthen the security of bank notes further, incorporation of latest security features is underway. A high Level Committee headed by the Union Home Secretary comprising officials from central agencies and other senior police officials has been constituted to monitor and draw a comprehensive strategy to combat FICN. Similar bodies have also been set up in the States. In addition, Government of India have nominated the Central Bureau of Investigation as the Nodal Agency to monitor investigation of fake currency note cases. The RBI has also strengthened the mechanism for detection of counterfeit notes by the Banks.
This information was given by the Minister of State for Finance Shri Namo Narain Meena in a written reply to a question raised in Lok Sabha today.
Control on Issuance of fake notes from ATMs and Banks’ Cash Desks & Infiltration of Fake Notes in banking Channel
In order to ensure control over frequent issuance of Fake notes from ATMs, Banks’ Case Desks
and Infiltration of Fake Notes in banking channel, it is imperative for Banks to understand and
recognize some basic but practical facts and fundamental technical differences with regards to
the two important operations and processes on Currency notes i e
a) Authentication of genuine notes cum detection of fake notes that could be hidden in the packets of genuine notes ( plus counting and value counting) &
b) Sorting Processes over genuine notes after removal of fake notes
Lots of Confusions, Misconception & Misunderstanding seems to have been prevailing amongst
most of the Banks, ( mainly due to technical complexities involved in the security features of
the notes,) with regards to the type of machines which are required for Authenticity
Check & machines that is required for Sorting of Notes; while grossly undermining the serious
differences in reality, practicality and technicality involved in both the operations.
Most of the banks have practices of using Sorting Machines for Authenticity Check with
Simultaneous Process of Sorting of the Notes, which could be one of the many reasons,
allowing the fake notes to pass through as genuine.
The Banks presumes that issuable notes passed by the sorters are 100% genuine only. This process allows fake notes to escape as re issuable genuine notes, simply on the basis of matching of fake notes’ images with genuine notes’ images, as scanned by sorters through image sensors.
Moreover, RBI is very clear in their guidelines to Banks that authentication is the pre requisites of sorting process but most of banks do not follow or understand the message issued by RBI!
Most of the Banks follow sorting first and authentication for sorted notes later as secondary process. They manually examine the unfit (non re issuable) sorters’ rejected notes to decide which one out of the sorted and rejected notes are fake; grossly ignoring the high probability of passing Fake Notes due to unsuspecting Sorting Parameters like orientation, face up, face down, denomination which could contain fake notes that could probably be passed for matching the said parameters.
Technically, both the operations on the notes are mutually exclusive for obtaining respective
accuracies in both these different operations on currency notes. However, both the
operations are misunderstood and taken as Synonymous and mutually inclusive is the basic
root cause of the problem.
The currency authenticity check has been absolutely and directly concerned to national
Economy, crime, loss of value etc; requiring high level accuracy of detection of fake notes
Vis- a -Vis less relevant currency sorting process which is concerned only with discrimination of
Notes on the basis of qualities, denominations, orientations, face up & face down arrangements
in the packets for convenient handling of genuine notes.
Currency sorting machine have not bee meant for detection of fake notes and validation of genuine notes; as good quality of fake notes with identical images to that of genuine notes can pass as “Genuine†on the basis of matching of images on the notes. Practically, the Fabrication of identical images on fake notes has become easy tasks now a days by uses of high quality of color scanners, color printers, computers etc.
The sorters just can discriminate the images and do not verify the physical and chemical properties used in printing the notes. There has to be substantial variation between the material used in the fake notes and materials used in the genuine notes even fake notes are made by specialists with high end infrastructures of generating the fake notes in bulk with other states supports. This is because every security features if examine in details has large number of their own independent technical specifications.
High Scanning Speed of sorters kills the accuracy of authenticity as with high speed large number of check points are skipped without any check of their respective authenticity, while absolutely depending upon apparent images only.
Evidently there has been large many instances happening, where in, although notes are said to checked through sorting machines, at the end have been turn out as fake consequently.
Consequently, Accurate Currency Notes Authenticity check process, through most effective and
Compatible- to-job Machines, has been an urgent need of time for our Banking Industry for
Installation at Bank branches, ATM centers, currency chests etc. in order to ensure that fake notes
do not infiltrate in banking channel
In case country’s Economy has to be protected properly against any superior level of forgery and against economy wars wage by other countries , the sorting machines are to be replaced by mini forensic lab type currency authenticators at all bank desks.
Concerned persons of all Banks should visit a web site http://www.paradigmcashsystems.com for genuinely following the guidelines of RBI. The concept is very sincerely explained in the web details
I THINK Â THE MAIN PROBLEM FOR FAKE NOTES IS RELATED WITH MONEY ONLY NA..,IF THERE IS NO MONEY ?THEN NO PROBLEM , SO I THINK THE REDUCTION IN Â DIRECT USAGE OF MONEY MAY BE A SOLUTION.., WHAT I MEAN IS INSTEAD OF USING CURRENCY, WE WILL USE MONETARY THINGS LIKE CREDIT CARDS, DEBIT CARDS ETC.., THUS WE CAN STOP FAKE NOTES CIRCULATION.., OR ANOTHER WAY IS INTRODUCING SOME EXPENSIVE AND SPECIAL RAW MATERIAL IN MAKING OF CURRENCY WHICH IS AVAILABLE FOR CURRENCY MAKERS ONLY.,