Dispensing of fake notes from ATMs are an exception: RBI's Gandhi
MUMBAI: The Reserve Bank of India seeks to pacify any unwarranted worry triggered by a few fake note incidents where some bank ATMs have dispensed currency notes bearing the name of “Children Bank of India”
“It is not that ATMs are dispensing fake notes,” R Gandhi, RBI deputy governor told media persons on the side lines of conference held by Link Legal, a law firm. There are a few odd cases that have come up in the past few weeks.
“We cannot generalise like that. Standing guidelines are always there before the banks put the cash in ATMs. They are required to verify if they are genuine notes then only they get to put it....,” he said.
“One odd case that will be dealt with separately. That should not cause concern...how many cases of (fake) notes being dispensed by 2,00,000 odd ATMs.”
Gandhi has assured that if any changes are needed in third party cash handling, RBI will do those. Some customers have allegedly collected Rs 500 or Rs 2,000 fake notes from bank ATMs including ICICI Bank, Punjab National Bank and State Bank of India in parts of Delhi, Haryana, Madhya Pradesh.
All those notes were bearing the name of Children Bank of India. Authorities have started investigation on those matters.
With banks imposing a levy on cash transactions (withdrawals/deposits from bank branches) Gandhi has not found anything new.
“It is not a trend. They (banks) have only restored what was there earlier. Costs of operation, they have to factor in,” he said. “So long as charges are reasonable, we have no issue.”
If banks start charging unreasonable rates, the central bank will look into it. Banks normally make an assessment of their own cost of operations and fix charges accordingly.
With overseas funds flocking back to India, the deputy governor exuded optimism. The foreign portfolio investors (FPIs) have net invested around Rs 6,000 crore in February reversing a four-month old selling trend.
“We have created a positive environment for fund flow to happen in India. There are macroeconomic policies (that) are very strong. We hope they (FPIs) take the right call and bring investment into India,” Gandhi said.
“It is not that ATMs are dispensing fake notes,” R Gandhi, RBI deputy governor told media persons on the side lines of conference held by Link Legal, a law firm. There are a few odd cases that have come up in the past few weeks.
“We cannot generalise like that. Standing guidelines are always there before the banks put the cash in ATMs. They are required to verify if they are genuine notes then only they get to put it....,” he said.
“One odd case that will be dealt with separately. That should not cause concern...how many cases of (fake) notes being dispensed by 2,00,000 odd ATMs.”
Gandhi has assured that if any changes are needed in third party cash handling, RBI will do those. Some customers have allegedly collected Rs 500 or Rs 2,000 fake notes from bank ATMs including ICICI Bank, Punjab National Bank and State Bank of India in parts of Delhi, Haryana, Madhya Pradesh.
All those notes were bearing the name of Children Bank of India. Authorities have started investigation on those matters.
With banks imposing a levy on cash transactions (withdrawals/deposits from bank branches) Gandhi has not found anything new.
“It is not a trend. They (banks) have only restored what was there earlier. Costs of operation, they have to factor in,” he said. “So long as charges are reasonable, we have no issue.”
If banks start charging unreasonable rates, the central bank will look into it. Banks normally make an assessment of their own cost of operations and fix charges accordingly.
With overseas funds flocking back to India, the deputy governor exuded optimism. The foreign portfolio investors (FPIs) have net invested around Rs 6,000 crore in February reversing a four-month old selling trend.
“We have created a positive environment for fund flow to happen in India. There are macroeconomic policies (that) are very strong. We hope they (FPIs) take the right call and bring investment into India,” Gandhi said.
