In my earlier post I raises the issue how to do in case failed ATM transaction. Before that I wrote on Facebook wall about how to deal with the fake notes dispensed from ATM, in that I wrote in brief with no citation. Here after searching the RBI site and few financial website i came up with some citations in endorsement to a common man's justice while dealing with counterfeit currency.
As i told that if a common man receives the counterfeit notes from ATM and he went to exchange it to the concerned branch, that is also treated as tendering the fake notes and a common man has to suffer the police action.
In that case what a common man do to avoid legal action and to get the fair justice. Here below I mentioned some RBI directives which will bring some hope .
please note down the following RBI directives concerned with the fake notes.
As per RBI’s directive under Section 35A of the Banking Regulation Act, 1949, & Circular DCM Cir.NPD.3161/09.39.00 dated 19 November 2009 makes it imperative for all scheduled banks that currency in denominations of over Rs100 should be re-issued by banks over their counters or through ATMs only if these banknotes are duly checked for authenticity/genuineness and fitness by machines.
# Further, in para 127 of the Monetary Policy statement 2012-13, banks have to ensure that currency notes of all sorts received over the counter are re-circulated only after their proper authentication through machines, and to streamline their system in a manner which will make them bear the risk of counterfeit bank notes rather than the common man. Guidelines as per DCM’s circular No. 5063/16.02.22/2011-12 dated 9 May 2012.
Vide para 6 of Master Circular 2012-13 on “Detection and impounding of counterfeit notes”. It is now imperative and mandatory on the part of all banks irrespective of volume of daily cash receipt, to provide the facility of machine processing—and not to put currency notes back into re-circulation without this. Not doing this is in violation of Directive No 3158/09.39.00 (Policy). / 2009-20 dated 19 November 2009. This applies to currency notes dispensed through both teller as well as ATM.
Towards this, the RBI has issued guidelines on “Note Authentication and Fitness Sorting Parameters” in May 2010, which make it contingent on the bank/branch to provide at least one counting machine (with dual display) for public use and all banks/branches to be equipped with ultra-violet lamps or other appropriate banknote sorting / detection equipments.
Read together, this means that at least for on-site ATMs, a customer should have the facility to check currency notes before accepting them.
In addition, if you are using ATMs which are off-site (or even on-site) then it is incumbent on the bank/branch under which said ATM operates to ensure that only those currency notes which have been machine sorted are put back into circulation, and issued to customers. This is vide DCM (FNV) No. 5063/16.02.22/2011-12 dated as recently as 9 May 2012. The responsibility even for an off-site ATM and certainly for an on-site ATM lies totally with the branch.
So you can ask your branch whether the bank is in adherence with the above mentioned RBI directives, which is mandatory for the banks.
NOTES:-I endeavored to aware the reader about how to deal in such instances. few of the matters I extracted from moneyife.com, and some from RBI site...
As i told that if a common man receives the counterfeit notes from ATM and he went to exchange it to the concerned branch, that is also treated as tendering the fake notes and a common man has to suffer the police action.
In that case what a common man do to avoid legal action and to get the fair justice. Here below I mentioned some RBI directives which will bring some hope .
please note down the following RBI directives concerned with the fake notes.
As per RBI’s directive under Section 35A of the Banking Regulation Act, 1949, & Circular DCM Cir.NPD.3161/09.39.00 dated 19 November 2009 makes it imperative for all scheduled banks that currency in denominations of over Rs100 should be re-issued by banks over their counters or through ATMs only if these banknotes are duly checked for authenticity/genuineness and fitness by machines.
# Further, in para 127 of the Monetary Policy statement 2012-13, banks have to ensure that currency notes of all sorts received over the counter are re-circulated only after their proper authentication through machines, and to streamline their system in a manner which will make them bear the risk of counterfeit bank notes rather than the common man. Guidelines as per DCM’s circular No. 5063/16.02.22/2011-12 dated 9 May 2012.
Vide para 6 of Master Circular 2012-13 on “Detection and impounding of counterfeit notes”. It is now imperative and mandatory on the part of all banks irrespective of volume of daily cash receipt, to provide the facility of machine processing—and not to put currency notes back into re-circulation without this. Not doing this is in violation of Directive No 3158/09.39.00 (Policy). / 2009-20 dated 19 November 2009. This applies to currency notes dispensed through both teller as well as ATM.
Towards this, the RBI has issued guidelines on “Note Authentication and Fitness Sorting Parameters” in May 2010, which make it contingent on the bank/branch to provide at least one counting machine (with dual display) for public use and all banks/branches to be equipped with ultra-violet lamps or other appropriate banknote sorting / detection equipments.
Read together, this means that at least for on-site ATMs, a customer should have the facility to check currency notes before accepting them.
In addition, if you are using ATMs which are off-site (or even on-site) then it is incumbent on the bank/branch under which said ATM operates to ensure that only those currency notes which have been machine sorted are put back into circulation, and issued to customers. This is vide DCM (FNV) No. 5063/16.02.22/2011-12 dated as recently as 9 May 2012. The responsibility even for an off-site ATM and certainly for an on-site ATM lies totally with the branch.
So you can ask your branch whether the bank is in adherence with the above mentioned RBI directives, which is mandatory for the banks.
NOTES:-I endeavored to aware the reader about how to deal in such instances. few of the matters I extracted from moneyife.com, and some from RBI site...
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