Circulation of fake Rs 500 notes rife in PokharaCirculation of fake 500 rupee notes has become a cause for concern in Pokhara as the local authorities have been unable to track down their source.
Circulation of fake 500 rupee notes has become a cause for concern in Pokhara as the local authorities have been unable to track down their source.
The regional office of Nepal Rastra Bank (NRB) has been receiving at least one counterfeit bill of the denomination 500 every other day that local banks and financial institutions (BFIs) come across during their daily transactions.
This flow of fake notes has not ceased since mid-March, which suggests that there could be a substantial number of forged 500 rupee bills changing hands in the market, said Amar Adhikari, the officiating head of the NRB regional office.
The central bank has urged the Currency Management Department for an urgent investigation into the case.
It has also asked the local BFIs to exercise vigilance themselves.
One NRB official said financial cooperatives were more susceptible targets for currency counterfeiters, for they do not employ the same amount of scrutiny as banks do during their day-to-day transactions.
With the election season heating up, there is a high chance of fake currency getting injected in the market around this time, said Bishwo Mohan Adhikari, the CEO of Om Development Bank.
Banks in Pokhara had dealt with the problem of counterfeit note circulation during the elections in the past as well, he added.