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RBI INTRODUCES NSM MACHINES TO DETECT FAKES NOTES FOR BANKS

fake-note1Branches of all banks across the country will soon be equipped with NSMs or note sorting machine that will detect fake currency. This is what the Reserve Bank of India (RBI) wants, and it will ask banks to submit roadmaps to achieve the target. A high level group on Systems and Procedures for Currency Distribution, headed by RBI Deputy Governor Usha Thorat, has recommended the installation of Note Sorting Machines at all branches in a phased manner to further strengthen the measures to combat menace of fake notes. Currently, NSMs are installed at only the 4,271 currency chests – or storehouses where notes and coins are stocked on behalf of the RBI – of commercial banks. India has a total of nearly 70,000 bank branches. In 2007-08, Rs 5.49 crore of fake currency notes in various denominations were detected, which was 137 per cent higher than the previous year on account of rise in detections. This amount does not include fake notes seized by police and other enforcement agencies.

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