RBI asks banks to stop Rs 1,000 notes without security thread

The RBI today said it has received complaints about notes of Rs 1,000 denomination without the security thread being in circulation and has asked banks not to issue them in case these are found.
"We have received complaints regarding banknotes in the denomination of Rs 1,000 printed by Currency Note Press, Nashik, on the paper (without security thread) supplied by Security Paper Mill (Hoshangabad)," an RBI spokesperson said.
The Reserve Bank has informed all the banks in Mumbai region not to issue such notes if found in stock and to provide exchange value to the customer who approaches with such a note, if it is otherwise genuine.

"We have also escalated the matter to the government," the spokesperson said.
The total number of such notes with public may not be more than 500 pieces, the spokesperson added.
So, in value terms these would be worth Rs 5,00,000.

The work areas include operationalisation of Sharia boards
and committees, feasibility of extending deposit insurance to Islamic banking deposits, identifying the financial risk and suggesting appropriate accounting framework for these products, the central bank had said in the letter written in December last year.
The RBI had in February this year also sent a copy of the IDG to the Finance Ministry.

It said the RBI also needs to work on formulating suitability and appropriate criteria for Islamic products in addition to what would be determined under Sharia.
In its annual report for 2015-16, the central bank had said that some sections of Indian society have remained financially excluded for religious reasons that preclude them from using banking products with an element of interest.
"Towards mainstreaming these excluded sections, it is proposed to explore the modalities of introducing interest- free banking products in the country in consultation with the government," it had said.
The plan for Sharia bank was opposed by certain political and non-political groups.

In late 2008, a committee on Financial Sector Reforms, headed by former RBI Governor Raghuram Rajan, had opined the need for a closer look at the issue of interest-free banking in the country.
The committee had said, "Certain faiths prohibit the use of financial instruments that pay interest. The non- availability of interest-free banking products results in some Indians, including those in the economically disadvantaged strata of society, not being able to access banking products and services due to reasons of faith."
"This non-availability also denies the country access to substantial sources of savings from other countries in the region," the panel had said.