RBI to seek certification for its currency management system

The Reserve Bank of India (RBI) is preparing itself for an ISO certification for its currency management system and has decided to update the security features of all notes above Rs 100 denomination.

This would be for the first time in the history of the central bank that any department of RBI has opted for such certification from an external agency. As of now no other department of the bank has ever felt the need for such certification.

Addressing a press conference here today, P K Biswas, an executive director at the central bank said, "The apex bank is bringing in a few changes in its currency management system for the purpose. It is a long process and we are updating our systems and procedures for the ISO certification."

"We also need to fine-tune our supply chain management for the certification so that we can serve the public at large better. Our currency management system has to meet customer expectations. It will be sometime before we receive the certification," Biswas added.

Biswas said the apex bank was planning to introduce new coins of Re 1, Rs 2 and Rs 5 denominations by April 2006 and would introduce new notes with enhanced features by April 2005. He added that the existing security features will be retained in all these notes but a few new features would be added.

On fake notes, Biswas said it was not possible to stop counterfeit altogether, but the apex bank was taking measures to minimise such occurrences. "The new notes are being printed with a view to minimise such incidents."

Biswas said the number of fake Rs 500 notes has come down in the last one year, but the number of fake Rs 100 and Rs 1,000 notes has increased.

When asked on the possibility of introduction of notes made of materials other than paper, he said, "The RBI is examining the issue. But, a decision is yet to be taken."

Biswas said the central bank was regularly monitoring the banks for the 'clean note' policy, which was introduced sometime back. "Constant monitoring is required because there is a possibility that some banks not adhering to the rule due to some reason or other."