Reserve Bank of India Governor Y V Reddy today asked all banks to take stringent measures for preventing circulation of fake currency notes that can jeopardise the country's economy.
Talking to reporters in Kanpur, Reddy said the apex bank was aware that fake currency was in circulation. He said central and state governments, as also security agencies, must take strong preventive measures to check the menace.
Fake currency is a grave threat to the economy and the onus to prevent its circulation is on RBI, banks, Centre, the state governments and security agencies, he said.
He also directed RBI officials to keep a vigil on banks and ATM centres from where complaints of issuance of fake currency notes were received. Reddy said if fake currency was issued from any bank's ATM, that bank would be held responsible and strict action would be taken against it.
On the prime minister's 15-point programme for minority lending, he said RBI has given directions in this regard to all banks and the lenders were following these norms.
Asked about private banks charging very high interest rates on credit cards, he said these institutions sign a pact with customers on the interest to be paid and borrowers can approach RBI's ombudsman in case of complaints.
Reddy is the first RBI governor to visit the central bank's Kanpur office after C Rangarajan came here in 1977. Meanwhile, RBI has decided to hold a meeting of its Board of Governors on February 7 in state capital Lucknow. Uttar Pradesh Chief Minister Mayawati will also be invited for the meeting. Reddy said the previous meeting of the Board in Lucknow was six years ago.
