Automatically created folder namely “RECYCLER” in Pen Drive

Hi! Friends,
I used Avast Free Antivirus and updated it regularly.
But, I have a problem with my pen drive. Whenever I used the pen drive its showing a folder namely "RECYCLER" and Avast shows an error message "MALWARE BLOCKED". Though I delete that folder, next time it will automatically show the same. And I also formatted the entire pen driver in Command Prompt. But the same problem repeated again and again.
What is the solution for this? May I know is it harmful to my system? How can I remove that folder completely from my pen drive? And is there any settings available in Avast to guard from that virus?
I have attached herewith a JPEG file to describe the problem in brief.

