Home › Circulars › RBI/2004-05/458

New Security Features for Rs 50 and Above Notes

Current & verified — this is the latest version
Source: Reserve Bank of India · RBI/2004-05/458 · issued 07 May 2005 · ~1 min read
Quick answerRBI will introduce banknotes with additional/revised security features for Rs 50 and above denominations during 2005 to combat counterfeiting. Banks must adapt currency handling machines and prepare for a phased rollout.
The rule, in the simplest words
How it plays out — a real example

Rahul, a currency handling machine vendor in Mumbai, worked closely with a team of bank officials to ensure their machines could process the new security features on Rs 50 and above banknotes. He explained the importance of the new features to the bank staff, who were eager to learn how to identify genuine notes and prevent counterfeiting. Rahul's team successfully adapted the machines, and the bank was ready for the phased rollout of the new banknotes.

What changed

RBI decided to incorporate additional security features and improve existing ones on banknotes of Rs 50, Rs 100, Rs 500, and Rs 1000 denominations, following a High Level Committee's recommendations. The new notes will be introduced in a phased manner during 2005, targeting circulation in the near future.

What it means for you

Banks must ensure their currency verification and processing machines are compatible with the new security features to avoid disruptions. This move aims to deter counterfeiting and help the public identify genuine notes, but requires banks to update equipment and train staff.

What you must do

Who it affects

Public sector banks, Private sector banks, Foreign banks, Currency handling machine vendors, Banknote verification teams

❓ Common questions

When will the new notes be introduced?

New banknotes for denominations of Rs 50 and above will be introduced during 2005 in a phased manner, with circulation targeted for the near future.

📜 Read the original circular — full text as issued by RBI
RBI/2004-05/458 DCM (Plg.)No.G 40/10.01.00/2004-05 May 07, 2005 The Chairman/MD/ CMD/ CEO Public Sector Banks, Private Sector Banks, Foreign Banks. Madam/Dear Sir, Indian banknotes with additional/revised security features In the wake of increasing circulation of high quality counterfeit notes, particularly, Rs.100 and Rs.500 denominations, the Government of India had constituted a High Level Committee to consider strengthening the security features in our banknotes. The Committee's recommendations were examined and with the approval of the Govt., the Reserve Bank of India has decided to incorporate certain additional security features and make improvement in the existing ones, in the banknotes of various denominations. The new / improved / additional security features, besides acting as a deterrent to counterfeiting, will also enhance the overt features to help public in identifying the genuine banknotes. 2. The issue of banknotes with additional/revised security features is targeted for circulation in near future. New banknotes for the denominations of Rs.50 and above will be introduced during 2005 in a phased manner. As you are aware, the currency verification & processing activities have been mechanized at the RBI. The banks also have been advised to equip themselves with proper and adequate number of currency handling machines so that only the non-issuable notes are sent to the RBI for eventual disposal. The mechanization of currency handling process is under way in the banks. It, therefore, becomes imperative that the banks are aware of the proposed changes in the existing security features so as to attempt suitable adaptation to their machines. Details of new/additional overt security features for the denominations of Rs.50, Rs.100, Rs.500 and Rs.1000 are enclosed . Banks are advised to peruse the list of security features carefully, get them examined, and take appropriate steps for handling these banknotes. 3. A meeting of the Chief Executives of banks to share information on the changes in the security features of banknotes and to create an overall preparedness, will be held on a suitable date for which a separate intimation will be sent. Needless to mention, the Reserve Bank will run public awareness campaign on these features at the time of putting the new notes in circulation. Yours faithfully Sd/- (U.S.Paliwal) Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2004-05/458 · issued 07 May 2005. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
⚙️ Operations
  • Assess and adapt your currency handling machines to process the new notes effectively.
📜 Compliance
  • Review the enclosed list of new overt security features for Rs 50, Rs 100, Rs 500, and Rs 1000 notes.
  • Prepare for a meeting with RBI on security feature changes; await separate intimation.
  • Plan internal awareness and training for staff on identifying the new features.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (Public sector banks, Private sector banks, Foreign banks, Currency handling machine vendors, Banknote verification teams), your first concrete step on “New Security Features for Rs 50 and Above Notes” is: “Review the enclosed list of new overt security features for Rs 50, Rs 100, Rs 500, and Rs 1000 notes.” (RBI issued this 07 May 2005).

  1. Circular: RBI/2004-05/458 -- New Security Features for Rs 50 and Above Notes
  2. Issued: 07 May 2005
  3. Action required: Review the enclosed list of new overt security features for Rs 50, Rs 100, Rs 500, and Rs 1000 notes.
  4. Action required: Assess and adapt your currency handling machines to process the new notes effectively.
  5. Action required: Prepare for a meeting with RBI on security feature changes; await separate intimation.
  6. Action required: Plan internal awareness and training for staff on identifying the new features.
  7. Owner: ____________ Target date: ____________
  8. Board/committee approval needed? Y / N
  9. Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

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BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=2246&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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