In a report, the Finance Ministry has revealed that private banks operating in the country have detected and processed the maximum number of fake currency notes in banking channels surpassing both public sector and foreign banks by a huge margin.
For detecting fake currency notes and send such information to the Financial Intelligence Unit (FIU), all banks (private, public and foreign banks) in the country and similar financial intermediaries are mandated, under anti-money laundering laws and other rules related to national security. FIU is the premier intelligence gathering agency for such instances in the country, under the control of the finance Ministry.
The private banks contributed the maximum number of Counterfeit Currency Reports (CCRs) at 3,10,714, to the FIU during 2011-12, while, the public sector banks detected and sent only 2,649 such reports in the same period. Even foreign banks operating in the country sent 9,273 CCR reports, while the other banking intermediaries sent in 4,746 such reports in 2011-12, surpassing the public banks total volume of CCRs by few thousands.
The public sector banks, which have the largest base of customers and investors in the country, have become a matter of concerns for the agency prompting immediate remedial measures because of their slow pace and low volume of compliance in this regard. In this regard, the FIU has approached the Reserve Bank of India (RBI) to get better results from public banks in this area of utmost concern.
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