Page 12 - Banking Finance July 2023

RBI CORNER

Reserve Bank

RBI proposes strict cyber Satish Chandra Sharma and Justice and 95.4 per cent at other banks. Com-
Subramanium Prasad that currently Rs. pared to the previous year, there was
security norms for PSOs
2000 notes were not being used really an increase of 8.4 per cent and 14.4
In a move to ensure safety and secu- adding that, adding that "this issue of per cent in the counterfeit notes de-
rity of digital payments amid emerging alleged demonetisation was also sub- tected in the denominations of Rs 20
cyber risks, the RBI announced draft ject matter of an earlier petition the and Rs 500 (new design), respectively.
regulations for payment system opera- verdict on which has been reserved by
The counterfeit notes detected in the
tors (PSOs). It proposed that such the HC". He also submitted that this
denominations of Rs 10, Rs 100 and Rs
norms would be implemented from was a matter of "economic policy".
2000 declined by 11.6 per cent, 14.7
April 1, 2024, for large non-bank-PSOs.
The RBI further said that this exercise per cent and 27.9 per cent, respec-
For medium-sized non-bank PSOs, the was only for the exchange of notes and tively, it said.
deadline for implementing the regula- that after September 30 (time granted
tion will be April 1, 2026, and for for exchanging the notes), a decision RBI to launch pilot project
smaller ones, it's April 1, 2028. may be taken after seeing a result of
for QR-code based coin
The draft directions issued by the regu- the exchange.
vending machines
lator covers robust governance mecha-
nisms for identification, assessment, 14.4% rise in Rs. 500 fake The RBI is preparing a pilot project on
monitoring, and management of cyber QR code-based Coin Vending Machine
notes
security risks. (QCVM) in collaboration with a few
The Reserve Bank has reported a 14.4
leading banks to improve distribution
per cent increase in the number of
RBI: Withdrawal of Rs 2000 of coins among the public, said the
counterfeit Rs 500 notes (new design) central bank in its Statement on Devel-
note is 'currency manage- during the year 2022-23.
opmental and Regulatory Policies.
ment', not demonetisation The RBI and banks detected 91,110
The QCVM is a cashless coin dispensa-
Opposing a plea in Delhi HC challenging counterfeit Rs 500 notes valued at Rs
tion machine, which will dispense coins
the RBI's May 19 notification to with- 4.55 crore during the year as against
against a debit to the customer's bank
draw Rs 2,000 currency note from cir- 79,669 counterfeit notes valued at Rs
account using Unified Payments Inter-
culation, the central bank said the de- 3.98 crore, according to the Annual
face (UPI) and eliminate the need for
cision is not demonetisation but a part Report of the RBI.
physical tendering of banknotes and
of "currency management system".
During 2022-23, out of the total fake their authentication. Customers will
The submission was made by senior Indian currency notes (FICNs) detected also have the option to withdraw coins
advocate Parag Tripathi who stated in the banking sector, 4.6 per cent in required quantity and denominations
before a division bench of Chief Justice were detected at the Reserve Bank in QCVMs, said the central bank.
BANKING FINANCE | JULY | 2023 | 11