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RBI to increase monitoring of banks

The Reserve Bank has said it will step up monitoring of banks after a large amount of fake currency was found in a public sector bank on Monday.

business Updated: Aug 05, 2008 18:50 IST

The Reserve Bank has said it will step up monitoring of banks after a large amount of fake currency was found in a public sector bank on Monday.

The apex bank has already formed a team to carry out such surprise checks, RBI said.

Reserve Bank officials on Saturday found fake currency with a face value of Rs 20 lakh from State bank of India's branch in Sidharthnagar in Uttar Pradesh.

"Finding fake notes in large quantity in PSU banks is disturbing. The banks found with fake notes will be responsible for it," said RBI Regional Director for UP and Uttarakhand J B Bhoria.

It the responsibility of the bank to investigate as to how such huge amount of fake currency reached the strong room of the bank, and also find out about the employees of the bank involved in the act, Bhuria told PTI.

"The RBI has already issued instructions that the associated bank would be responsible in case fake notes are found in the bank or its ATM. We have formed a team for surprise checks in the banks with regard to the fake notes racket", he said.

The team deputed by the RBI would pay surprise visits to the currency chest of the banks and see if it has any fake currency, he added.