ATMs with fake note detectors
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Increasing number of fake notes in the system enforces RBI to introduce the fake note detectors in the ATMs across India. A group set up to complete this task on August 2008. It is because there is large number of fake notes in the circulation.
The absolute number of counterfeit notes detected at bank branches and the RBI offices has increased from 1,02,687 pieces or 3 per million in 2000-01 to 3,98,111 pieces or 8 per million in 2008-09.
This team may put new system to feed the ATM machines which may detect the fake notes while feeding the system itself.
Elaborating on the action to be taken by citizens who come in possession of counterfeit note without knowledge of it being counterfeit, the Group said when any person inadvertently in possession of fake notes up to five pieces tenders the same at a bank counter, banks should impound such notes and provide acknowledgment to the tenderer as per current guidelines. Further, banks need not file a first information report in such cases. However, they should obtain approved ID documents of the tenderer.
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Kirit Vora said:
Fake Note detection at Cash Desks of Banks and at ATM centers before refilling the ATMs through much needed compatible Equipments
Current Scenario regards to fake note detection in Indian Banking Industry
Most of the recent cases of remittance of fake notes to RBI and issuance of fake notes at ATM centers or at cash desk by many leading commercial Banks have been emerging as a result of erroneous understanding on complexity and intricacies involved in the related technology not only that of notes but also of different special purpose machines like sorting machine, counting machines, handy UV/IR equipments, ink pens and manual checking process leading to improper/inaccurate detection most of the time out of the results of not deploying right detection equipments having compatible technology for FICNs detection.
Information on availability of most compatible Machine for Detection of Fake Notes in International Banking scenario:
Desk Top Fake Note Detectors/ Sorters -DTFND/Ss (also have been recognized as Mini Currency Validity Verification & Processing Systems –MCVVPSs ), in the international Banking channels have been used for validity verification & fake note detection for exhaustive/detailed scanning of all notes while working on Image Cum Data based technology wherein fake notes are processed in isolation to any other type of segregation and hence have been regarded as only the perfect detection tools as against Note Sorting Machines – NSMs(also have been recognized as Desk Top Sorters –DTSs) which have been primarily used for different types of specialized currency operations of segregating the notes on the basis of set criterion like quality, designs, faces, orientations, denominations etc and pockets have been provided for collecting notes under such set criterions but no special “on line” pockets have been provided for separating fake notes during sorting on different set criterion to isolate the fake notes from all other type of notes.
As you may be aware, NSMs/DTSs do not scan, detect and segregate the fake notes in Isolation of other set criterions by transporting fake notes in the separate and exclusive pocket for collection of fake notes but have been mixed and transported to different pockets as per the normal criterion set in the machine and hence technically becomes impossible to detect the fake notes in isolation to other categories of notes. NSM being incompatible for fake notes detection, have not been used for validity verifications & detection of notes unless those currency types have high end costly security features which are least in ICNs, as the same have been working only on image based technology which though useful for such set sorting process, have not been found good enough for validity verification & detection of fake notes, unlike that of DTFND/Ss-MCVVPSs which sorts the notes in isolation.
We feel the said aspects were absent in the report of HLG, mainly due to merely dearth of such machine in India, as development of such machine needed special R & D efforts separately for each currency types Viz US Dollars, Euro, Sterling pound, as have been carried out by us for detection of Fake Indian Currency Notes to make it possible to check even super fake notes in pure isolation.
The technical aspects on currency notes required to be scanned for purposes of sorting processes; all to gather have been different to that which has been required to be scanned for validity verification and detection of notes. The former involves overall checking of both the faces of notes at very high speed, while as latter involves pixel to Pixel checking of important security features on the notes at the most optimum technical speed for the purpose, as over all scanning have every chances of passing super fake notes for matching the over all features of genuine notes. Super fake notes still bound to have large number of discrepancies with genuine notes if checked pixel to pixel though can match with criterion of genuine notes while over all checking through sorting machines.
As you may be aware that NSMs/DTSs basically are most useful at currency chests or large size Bank branches who are supposed to sort the notes under different categories, have been designed for currency sorting processes on the basis of set criterion like designs, quality, orientations, faces, series, fitness etc, however we feel that NSMs/DTSs have not been designed aptly & exhaustively for accurate fake note detection and hence NSMs/DTSs can not be used as a perfect substitute of DTFND/Ss-MCVVPSsf that are exclusively designed for the specialized process of detection of Fake Notes adding ancillary functions useful at cash desks or at ATM centers.
With deployment of accurate DTFND/Ss-MCVVPSs, the huge investment can be recovered back by avoiding the losses on account of erroneous acceptance of fake notes at cash desks, as also heavy expenditures on consequential legal hassles and lose of Goodwill due to non compliance of strict provisions of law regards to handling of fake notes, though handled unintentionally.
The high speeds of NSMs/DTSs, kill the accuracy of fake note detection as it leaves behind large number of security criterions being unchecked and specifically due to incompatibility of NSMs/DTSs of adapting digital technology which ensures the perfection.
NSMs/DTSs can not check/scan notes pixel to pixel leading consequential inaccurate & imperfect detection of fake notes except for detecting poorly fabricated notes and thus runs with great risks of passing fake notes as genuine or rejecting genuine notes as fake or doubtful.
NSMs/DTSs just throw out large number of doubtful notes with comparatively large number of false alarms and carries very high possibility of passing super fake notes as genuine resulting into issuance of such notes at cash counters or at ATM centers.
Moreover, even highly expensive big sized currency processors used by currency chests and issue offices of Controlling Banks like RBI, with large number of packets used for heavy duty operations are also not able to detect fake notes. The rejected notes are to be manually checked for validity verification & detection of notes. The ration of selected and rejected notes falls on average ratios of 70:30. DTFND/Ss-MCVVPSs could be used to process Sorter rejected notes for detection of fake notes and thus could offer alternative to manual verification of Rejected notes at currency chest with utmost perfection, eliminating the chances of natural human error in adjudication of fake notes.
Fake notes in circulation due to mass mishandling also have been influenced by factors like spoilages, folds, mutilated, physically damaged, soiled, corner fold, tear, tear, holes, missing corner, scribbles, denomination, orientation, formats, adhesive taps, limpness, stains crispiness, identical images, colors, sizes, ink, water mark, paper etc are most likely to be segregated by sorters like that of genuine notes under such varied set sorting criterion instead of getting rejected as fake.
The kind of machines Indian Banks at cash counters needed for the fake notes detection purpose are the machine which can verify not only the images, emblems, portraits, texts, water marks, magnetic and other machine readable features of notes but also checks the physical and chemical properties of security paper, varied types of inks, resins, security threads and other materials used in production of notes, constituting large number of check points out of the interrelated combinations & permutations of varied security features in the notes, by automatic one by one pick ups of single note at a time out of the stacked packet of 100 notes of single or mixed denominations, and processes 100 notes in 1 minute which technically have been regarded as optimum for accurate validation & detection of Fake Notes
The machine meant for detection of fake notes as prime function invariably should be capable of not allowing any fake note to pass as genuine. It is possible only with the detectors specially developed considering the large number of intricacies concerning to Indian notes.
We feel with a view to facilitating the detection of Counterfeit notes, all bank branches/treasuries, at their cash Desks, specifically branches those have been dealing with members of public for acceptance and issuance of notes, ought to be equipped with Desk Top Fake Notes Detector/Sorter or Mini Currency Validity Verification and Processing Systems rather than with NSMs/DTSs
October 15th, 2009 at 9:26 am -
Kirit Vora said:
Comments on Report of High Level Group on systems & Procedures for currency distribution: HLG’s Recommendations for deployment of Note Sorting Machines/ Desk Top Sorters for Fake Note Detection:
Most of the recent cases of remittance of fake notes to RBI and issuance of fake notes at ATM centers or at cash desk by many leading commercial Banks, (even after using Note Sorting Machines as have been recommended by HLG RBI), have been emerging as a result of erroneous understanding on complexity and intricacies involved in the related technology not only that of notes but also of two different special purpose machines like Note Sorting Machine and genuine Accurate Desk Top Fake Note Detectors, leading to improper/inaccurate fake note detection process. This has been happening mostly as the consequences of not deploying right detection equipments like Desk Top Fake Note Detectors/ Mini Currency Validity Verification & Processing Systems having compatible technology for FICNs detection and using NSM for fake notes detections though have been meant for other basic functions of sorting notes on the basis of preset criterion and can not provide specific function of detection of fake notes while currency validity verification of each notes.
Although the report of HLG RBI recommending Note Sorting Machine for detection of Fake Notes at Cash Desks of Bank branches has been appropriate to the extent & till the time the Accurate much needed Desk Top Fake Note Detectors (DTFNDs)/ Mini Currency Validity Verification & Processing Systems (MCVVPSs) for Bank branches have been introduced in the market..
Now that such machines have arrived in India, all bank branches/treasuries, at their cash Desks, specifically branches those have been dealing with members of public for acceptance and issuance of notes, ought to be equipped with such Desk Top Fake Notes Detector/Sorter or Mini Currency Validity Verification and Processing Systems rather than with NSMs/DTSs and accordingly some fresh guidelines is needed to be issued by RBI to all the Banks and ATM centers. We are sure; it will help our Nation and Banking channel in nabbing fake notes at the root level of its deposits and Issuance at Cash Desks of Banks & ATMs.
The technical aspects on currency notes required to be scanned for purposes of sorting processes; all to gather have been different to that which has been required to be scanned for validity verification and detection of notes. The former involves overall checking of both the faces of notes at very high speed, while as latter involves pixel to Pixel checking of important security features on the notes at the most optimum technical speed for the purpose, as over all scanning have every chances of passing super fake notes for matching the over all features of genuine notes. Super fake notes still bound to have large number of discrepancies with genuine notes if checked pixel to pixel though can match with criterion of genuine notes while over all checking through sorting machines.
The kind of machines Indian Banks at cash counters needed for the fake notes detection purpose are the machine which can verify not only the images, emblems, portraits, texts, water marks, magnetic and other machine readable features of notes but also checks the physical and chemical properties of security paper, varied types of inks, resins, security threads and other materials used in production of notes, constituting large number of check points out of the interrelated combinations & permutations of varied security features in the notes, by automatic one by one pick ups of single note at a time out of the stacked packet of 100 notes of single or mixed denominations, and processes 100 notes in 1 minute which technically have been regarded as optimum for accurate validation & detection of Fake Notes
The machine meant for detection of fake notes as prime function invariably should be capable of not allowing any fake note to pass as genuine. It is possible only with the detectors specially developed considering the large number of intricacies concerning to Indian notes.
The high speeds of NSMs/DTSs, kill the accuracy of fake note detection as it leaves behind large number of security criterions being unchecked and specifically due to incompatibility of NSMs/DTSs of adapting digital technology which ensures the perfection.
NSMs/DTSs can not check/scan notes pixel to pixel leading consequential inaccurate & imperfect detection of fake notes except for detecting poorly fabricated notes and thus runs with great risks of passing fake notes as genuine or rejecting genuine notes as fake or doubtful.
NSMs/DTSs just throw out large number of doubtful notes with comparatively large number of false alarms and carries very high possibility of passing super fake notes as genuine resulting into issuance of such notes at cash counters or at ATM centers.
October 31st, 2009 at 6:03 am -
krishnas said:
Hello Kirit Vora,
Thank you for the infiormation.
Thanks,
KrishnaOctober 31st, 2009 at 6:52 am -
Kirit Vora said:
Hence the Desk Top Fake Notes Detectors (DTFNDs) / Mini Currency Validity Verification & Processing Systems (MCVVPSs) have been incomparable with built up High speed note counting machines or high speed sorters which are meant for altogether different operations to the operations of fake Notes Detections and validity verification of the notes.
November 6th, 2009 at 6:39 am -
Kirit Vora said:
In view of the serious problems of infiltration of fake notes in our country and Banking channel there have many high speed fake notes detectors been mushroomed up in the Indian market with high pitch media propaganda and mass advertisement campaigns. The detection of fake notes can not be reliably and most accurately operated on Note Counting Machines or Note Sorting Machines which have been built up or extended and thereby converted into Fake Notes Detectors by fixing UV/IR/Magnetic sensors for functioning as fake notes detectors. These kind of converted Fake Notes Detectors have been working simply on image based technology not sufficient for intricate scanning of notes for accurate adjudication of validity and detection of fake notes for compliance of stringent provisions of law and guidelines issued by controlling Bank of our Nation. Such high speed machines can not technically ensured pixel to pixel scanning of notes for validity verifications which is a must for accurate adjudication of the validity of the notes.
Detection of Super quality fake notes printed and pumped into any country with supports of other countries having strong sources of procurements of raw materials identical to original specifications & possessing full fledged infrastructures of Bank notes printing, is technically impossible with the incompatibly high scanning speed of 20 notes in a second, I e 0.05 seconds per note by note counting machines or sorters. Especially impossible in case of intricate Indian notes with vide verities of designs, quality, security features, un- uniform nature, spoilages on the notes, mishandlings etc for validity verification & detection of Fake Indian Notes.
The Detection accuracy is the first casualty of high speed scanning process by such built up or extended Loose Note counters or Sorters. Such machine at the most can detect is the poorly fabricated or toy or joy types of fake notes which apparently otherwise can be easily judge by quick glance and manual inspection.
In view of highly sophisticated fake notes being pumped into our economy, accuracy and technically optimum speed of the fake notes detectors, is the core requirements for 100% accurate currency validity verification, apart from requirements of Digital cum image based technology for pixel to pixel scanning of the surface of the notes. Bankers should have strong internal control systems of procurements of such machines so that 100% accurate machines only are procured.
Hence the Desk Top Fake Notes Detectors (DTFNDs) / Mini Currency Validity Verification & Processing Systems (MCVVPSs) have been incomparable with built up High speed note counting machines or high speed sorters which are meant for altogether different operations to the operations of fake Notes Detections and validity verification of the notes.November 6th, 2009 at 6:40 am -
michaela said:
A lot of time goes into banknote paper design before it’s the final product that we see come out the the ATM. Check out the blog at http://www.globalpapersecurity.com to learn about banknote production and other security paper discussions.
November 6th, 2009 at 4:44 pm -
bhuvy said:
can u send me the principle of fake note detector machine ?
and codes also ?
actually i m making a project named fake note detction machine thats why i want this ….. so plz send me all neccessary device which r added to this project.
thank you ………August 19th, 2010 at 7:15 am
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