Aizawl: Reserve Bank of India (RBI) Deputy Governor Subir Gokarn has voiced concern over financial organisations and banks operating without RBI registration and licence, saying it is a 'law and order problem'.
Talking to press persons about the continued operation of 'pseudo banks' in Mizoram at the financial outreach camp, organised as part of the RBI's platinum Jubilee celebration function held at Seling, about 40 km from here yesterday, he said, ''If there are such institutions functioning without the required licences then it is a law and order problem which should be taken up by the designated authorities.''
Stating that one of the points of holding functions in villages to mark RBI's platinum jubilee was to spread awareness about the banking system, he said, ''We want the people to know that they should not deposit money in fake banks and financial institutions, rather they should stay within the formal banking system in their best interests.''
When asked about the proliferation of counterfeit currency in the country in general and the state in particular, Mr Gokarn said the RBI had planned to make 'special paper' for printing currency notes which would be difficult to replicate.
Circulation of fake notes in the economy was a major problem and to combat it the RBI was taking several steps, he said. Besides, special paper, the RBI was in the process of consultation with experts to chalk out designs and superior identification technologies to mark the Indian currency note which would make it far harder for counterfeiters to imitate, he informed.
Apart from this, the RBI had an on-going training programme to educate bank employees, police and Border Security Force in the techniques of recognising fake notes.
Talking to press persons about the continued operation of 'pseudo banks' in Mizoram at the financial outreach camp, organised as part of the RBI's platinum Jubilee celebration function held at Seling, about 40 km from here yesterday, he said, ''If there are such institutions functioning without the required licences then it is a law and order problem which should be taken up by the designated authorities.''
Stating that one of the points of holding functions in villages to mark RBI's platinum jubilee was to spread awareness about the banking system, he said, ''We want the people to know that they should not deposit money in fake banks and financial institutions, rather they should stay within the formal banking system in their best interests.''
When asked about the proliferation of counterfeit currency in the country in general and the state in particular, Mr Gokarn said the RBI had planned to make 'special paper' for printing currency notes which would be difficult to replicate.
Circulation of fake notes in the economy was a major problem and to combat it the RBI was taking several steps, he said. Besides, special paper, the RBI was in the process of consultation with experts to chalk out designs and superior identification technologies to mark the Indian currency note which would make it far harder for counterfeiters to imitate, he informed.
Apart from this, the RBI had an on-going training programme to educate bank employees, police and Border Security Force in the techniques of recognising fake notes.