Senate Panel Concerned Over Alarming Circulation of Fake Rs. 5,000 Notes

The Senate Standing Committee on Finance on Tuesday voiced concern over the alarming circulation of counterfeit Rs. 5,000 notes in the country. The committee chairman Senator Saleem Mandviwalla demanded swift and decisive action from the State Bank of Pakistan to curb the widespread circulation of fake notes, a problem that has persisted for many years. Notably, the matter was also discussed in October 2023 with no progress on countermeasures reported so far. Mandviwalla pointed fingers at banks, suggesting that fake notes are entering circulation through these institutions. Deputy Governor SBP assured the committee of measures to control the problem, including the introduction of stringent regulations. Chairman committee proposed that the State Bank should make arrangements to exchange fake currency notes for genuine ones, but the Deputy Governor expressed concerns about long queues resulting from such an exchange. Mandviwalla questioned the powers of SBP, posing a broader query about the common man’s predicament in differentiating between genuine and counterfeit currency notes. The committee chairman also called for relief measures while emphasizing the urgency of the situation. The committee unanimously called for the formulation of a comprehensive policy to combat the escalating use of fake currency notes, particularly within the banking system.