An automated teller machine in Muzaffarpur. Picture by Prakash Kumar

Muzaffarpur, May 24: Automated teller machine (ATM) cardholders in the district are paying the price of sharing border with Nepal.

In an alleged case of money laundering and making of fake currency, the districts of Bihar that share border with Nepal, are in for bigger trouble.

All ATM card users of Muzaffarpur are under strict surveillance, particularly during nights, and might land in trouble for using more than one ATM card at night to draw out money from the ATMs.

The State Bank of India (SBI), which has more than 100 ATMs in Muzaffarpur, Sitamarhi, Sheohar, East Champaran, West Champaran, Madhubani and Darbhanga districts, is completely flabbergasted over withdrawal of larger denomination currency from the ATMs at night.

According to sources, all ATMs completely run out of money by the time it’s dawn. This problem assumed an alarming proportion recently and the bank officials are confused on how to check the problem. Sources said the currencies of Rs 1,000 and Rs 500 denominations are withdrawn in large proportions at night from the ATMs and they are being taken to Nepal to make a replica of the currencies with the same serial numbers. Later, they are distributed in the Indian market, the sources said.

It is also suspected that the money exchanges that have sprouted in huge numbers in the bordering areas of Nepal are indulging in the withdrawing of the money. The SBI has been the worst sufferer as it has the highest number of ATMs in the districts, which share border with Nepal. The bank has thus planned a strategy to restrict the cardholders from using more than one ATM at night.

Guards deputed at the ATMs have been directed to inform the police station concerned immediately if any person is found using more than one ATM to draw money from the machines.

Unofficially, according to sources, the guards at the ATMs have been asked to shut down the ATMs on flimsy grounds from 11.30pm till 6am to foil bids of drawing bigger currencies.

“As a result, our genuine customers are suffering,” said Mohammad Saud Alam, the senior branch manager of SBI, Chandwara.

On the other hand, the Reserve Bank of India (RBI) has taken a serious note of the issue.

The RBI has advised the top echelons of the SBI not to forward notes of big denominations to the ATMs in view of the involvement of money exchangers, Maoists and fake currency makers.

The SBI, as a preventive method, has stopped placing rakes of bigger currencies in the districts close to Nepal, particularly Motihari, Purnea and West Champaran.

However, there was acute shortage of currencies of big denominations. “The customers are not being provided with bigger notes despite a huge demand. We feel people from the neighbouring country come, draw out the money and may indulge in fake currency making,” said Alam, adding that the bank is providing currency of Rs 100 denominations only.

Alam said the bank has tightened vigilance of the ATMs, especially during nights.

Senior superintendent of police Rajesh Kumar said: “I have instructed the police stations concerned to respond quickly whenever they get any information about the use of more than one card by any customer from the ATMs.”