Disfigurement of banknotes punishable under law: CBO

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MUSCAT -- The Central Bank of Oman (CBOCBO) is clamping down on practices that lead to the defacement of banknotes in an effort to preserve the sanctity of Omani currency.

A circular issued by the apex bank warns cashiers, tellers and other handlers of currency against disfiguring notes by scribbling on them or indulging in other practices that mar the shape and appeal.

"It has been noticed that some staff of banks, money exchanges and other commercial entities are in the habit of putting stamps and pins, writing numbers and sometimes different names on the banknotes, which affect the shape and quality of the banknotes and their circulating condition," stated Hamoud bin Sangour al Zadjali, Executive President of the CBOCBO, in the recent circular.

The circular exhorts managements of banks and money exchanges operating in the Sultanate to instruct their staff against disfiguring banknotes in any way. Furthermore, it urges all banking and commercial outlets that handle banknotes to, in turn, advise their customers against disfiguring banknotes, warning that offenders risk being punished under Omani law.

The practice of writing or scribbling on paper currency, especially around the watermark area of the banknote, is not peculiar to Oman alone, but is a fairly universal phenomenon, say experts.

In the Sultanate, it is not uncommon to spot the odd bank teller or cashier at money exchanges, shops and other commercial establishments, writing on banknotes from time to time. "In the past, it used to be a fairly common practice for some cashiers to keep a count of notes in a certain bundle of currency by writing on the topmost banknote. That way, one wouldn't have to count the bundle each time a note is added to or removed from the bundle. But with the advent of note-counting machines and other sophisticated cash registers, this practice is on the decline," a representative of a leading money exchange chain explained.

The practice of defacing banknotes by writing on them, according to the executive, is more likely to occur in small retail outlets, restaurants and commercial entities that lack note-counting machines.

Ordinary individuals too may use the watermark area of a banknote to jot down a telephone number or other tidbits of information, thus contributing to the problem of banknote disfigurement, he further added.

Significantly, the CBOCBO circular also instructs banks to treat disfigured banknotes as "unfit banknotes".

Such notes must be deposited with the Central Bank according to prescribed procedure, the circular stated.

By Conrad Prabhu

© Oman Daily Observer 2010