How do banks detect fake notes?

A metallic thread is embedded in the note and appears as silver dashes on the back. When the note is held up to the light, the thread appears as a continuous dark line. Under a good‑quality ultraviolet light, the number ’20’ appears in bright red and green on the front of the note, against a duller background.

What does the bank do with fake currency?

No counterfeit currency will be exchanged for any value whatsoever. The Central Bank issues commemorative currency to mark national or Central Bank occasions and anniversaries. These currencies are availed for sale at the Bank when in stock.

What happens if you pay with a fake note?

The Bank of England will issue you with a receipt for any counterfeit banknotes you send them, and you will be reimbursed for any that turn out to be genuine.

Is possession of fake money illegal?

Counterfeiting Federal Reserve notes is a federal crime. Possession of counterfeit United States obligations with fraudulent intent is a violation of Title 18, Section 472 of the United States Code and is punishable by a fine of up to $15,000, or 15 years imprisonment, or both.

What is the penalty for counterfeit money?

Federal Crimes A conviction for the offense carries up to 20 years in prison and a fine. A conviction for producing counterfeit currency similarly carries a maximum sentence of 20 years imprisonment and a fine, as does a conviction for merely possessing counterfeit currency.

Do banks check for counterfeit bills?

Banks have strict security measures in place to detect fake money. Bank employees are trained to identify fake money through different security features of the bills. Second, banks use various technologies and tools to detect counterfeit notes, including money counters and fake currency detection technology.

Are ripped bank notes legal tender?

If the damage to the note consists of wear, tears, sticky tape or staples, marks or defacement and the note is complete, it can continue to be used. The damage has no impact on the value of the note. If more than 80 per cent of the note is missing, the remaining portion has no value.

What to do if you receive a fake currency note?

Report the fake currency to the bank: Take the fake currency note to the bank and inform the bank authorities. Give them the details of the complaint lodged in the ATM register, so that they can take up the issue with the ATM cash loading company.

How can you tell if a bank note is real?

Hold the banknote up to the light and look for the watermark to tell if a note is real. • Make sure the number on the top and side of the note are the same. To tell if a note is real, make sure that the note numbers correspond. • The big numbers at the right hand side of the note must change colour when you move the note.

What happens when a bank impounds a fake note?

After impounding a fake note, the bank is supposed to issue an acknowledgment in a prescribed format authenticated by both the cashier and the tenderer. While depositing cash at a bank counter, if it is established that the notes are fake, they will not be returned to the tenderer.

What happens if you don’t countersign a currency note?

The RBI rules say that the receipt is to be issued even in cases where the tenderer is unwilling to countersign it. The bank will also have to stamp “counterfeit note” on the currency and once impounded, it has to be recorded in their registers.