Finance Ministry asks RBI to establish special cell for monitoring of fake currencies

Concerned over circulation of fake currency in the country, Finance Ministry on Saturday asked the Reserve Bank to set up a special cell to monitor such notes.

RBI has been advised by Ministry of Finance to set up a Special Cell to monitor the receipt of fake currency notes and inform such instances to the law enforcement and investigative agencies, Finance Ministry said in a statement.

The central bank has been asked to inform such matters to Economic Offences Wing of the State Police, Intelligence/Enforcement Agencies of the Central Government and also to the Ministry of Finance, it said.

"One of the primary objectives of cancellation of legal tender character of old series of Rs 500/- and Rs 1000/- notes was to check the menace of terror financing through counterfeit currency notes," it said.

The receipt of counterfeits/fake currency notes in Banks and Post Offices are, therefore, being monitored very closely, it said, adding a special watch is being kept on receipt of such fake notes in the States bordering our neighbouring countries.

"The Law Enforcement Agencies have also been advised to maintain close vigil over possible movement of fake currencies and take prompt action as and when such cases are detected by them as well as by RBI and Banks," it said.