CURRENT AFFAIRS

Detailed explanation-1: -6.4 Penalty at 100% of the notional value of Counterfeit Notes, in addition to the recovery of loss to the extent of the notional value of such notes, will be imposed under the following circumstances: a) When Counterfeit Notes are detected in the soiled note remittance of the bank.

Detailed explanation-2: -Press Releases. The Reserve Bank of India (RBI) has, by an order dated November 16, 2021, imposed a monetary penalty of ₹1.00 Crore (Rupees One Crore only) on State Bank of India (the bank) for contravention of sub-section (2) of section 19 of the Banking Regulation Act, 1949 (the Act).

Detailed explanation-3: -Counterfeit notes detected in denominations of Rs 50 and Rs 100 declined 28.65 and 16.71 percent, respectively, the report showed. Of those, 6.9 percent were detected at the RBI with the rest 93.1 percent at other banks.

Detailed explanation-4: -According to the RBI annual report, published in May 2022, the number of fake currency notes of 500 denomination detected by the banking system more than doubled to 79,669 pieces in 2021-22 fiscal over the previous year.

Detailed explanation-5: -However, in order to ensure proper discipline in reporting currency chest transactions, a flat penalty of ₹50,000 shall be levied on the currency chests for delayed reporting, irrespective of the value of net deposit.