Following demonetization, concerns about counterfeit currency and notes have emerged. Responding to these concerns, the Reserve Bank of India (RBI) has released an official statement regarding the Rs 500 note.
RBI On Rs 500 Currency Note:
In the present day, it’s common for everyone to possess a Rs 500 note. However, the pressing question is whether these notes are genuinely fit for circulation in the market. The reason behind this concern is the surge in reports about counterfeit currency and fake notes that have emerged since demonetization. In response to these growing concerns, the Reserve Bank of India (RBI) has released an official statement concerning the Rs 500 note.
What RBI Stated:
The Reserve Bank of India (RBI) has issued instructions to banks, requiring them to conduct a thorough examination of their note-sorting machines every quarter to ensure accuracy and stability. The goal is to verify whether counterfeit notes meet the prescribed parameters. RBI has established 11 standards to determine the appropriate condition of currency notes. Additionally, banks have been advised to employ note-fit sorting machines instead of general note-sorting machines.
Defining ‘Fit’ and ‘Unfit’ Notes:
According to RBI’s circular, a ‘fit’ note is genuine, clearly legible, easily assessable for its value, and suitable for recycling. Conversely, an ‘unfit’ note is one that, due to its physical condition, is not suitable for recycling. The Reserve Bank of India has phased out numerous unfit note denominations.
RBI’s Directives to Banks:
RBI has directed banks to regularly validate the authenticity of their note-processing and sorting machines. Any note that does not meet all the criteria for a genuine note will be classified by the machine as doubtful or rejected. Furthermore, as per the circular, banks are required to send currency note fitness reports to RBI every three months. These reports should include the number of unfit notes and those that can be reissued after appropriate maintenance.