SBI could make Indian banks eat counterfeit notes

Feb. 8, 2013

Currently Indian citizens must chalk up a loss if they receive counterfeit currency from an ATM. However the Reserve Bank of India is looking to change that policy.

A report by the Times of India said that, according to SBI governor Duvvuri Subbarao, the central bank is working with the Indian government to revise the law so that the source of counterfeit notes becomes legally liable for them. 

The report said that banks have been "flooded" with complaints from customers about fake bills dispensed at ATMs. Currently, the bank seizes the notes and the customer is left with a loss. In such cases, it is the bank customer who suffers the loss as banks seize the notes.

"We have asked bank managers to be sympathetic and take into consideration the circumstances when a person approaches with fake notes," Subbarao said. "Banks must check currencies for genuineness and cleanliness before putting them into ATM machines."

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Topics: Asia, Australia & Pacific , Security , Skimming / Fraud

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