Business IdeasBanks to run checks on high-value notes
In a measure to control the circulation of counterfeit notes, the Reserve Bank of India (RBI) has directed banks to issue bank notes in denominations of Rs 100 and above either over their counters or through automated teller machines (ATMs), only after these banknotes are duly checked for authenticity and fitness by sorting machines.
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Therefore, all banks should install note sorting machines at all branches having an average daily cash receipt of Rs 1 crore and above by March 2010 and average daily cash receipts between Rs 50 lakh and Rs 1 crore by March 2011.
The high-level group on systems and procedures for currency distribution, in its report submitted in August 2009 had observed the growing volume of banknotes in circulation. It had also stressed upon the need to ensure that only clean and genuine banknotes were put into circulation by banks.