What changed
RBI issued this circular following a May 25, 2005 meeting where new/revised security features for Indian banknotes were explained. Banks must now educate field staff and the public, and provide vendor details for currency handling machines. RBI also accepted bank suggestions on vendor awareness and staff training.
What it means for you
Banks must quickly operationalize training for frontline staff to recognize and explain new security features, ensuring public confidence. Submitting vendor details enables RBI to coordinate machine recalibration. This is a compliance and operational readiness exercise—no new note issuance yet, but preparation is key.
What you must do
- Train field-level staff on new/revised security features and ensure they educate the public.
- Submit details (names, addresses, phone/fax, email) of vendors for sorting machines, ATMs, currency exchange machines, and note counters to RBI by June 15, 2005.
- Assess staff training needs and share with RBI for support; trained staff should then train others.
- Make preliminary arrangements for publicizing the new security features.
Who it affects
Public sector banks, Private sector banks, Foreign banks, Bank field-level staff and trainers
Will old banknotes with existing security features stop being legal tender?
No. RBI explicitly stated that banknotes with existing security features will continue to be legal tender.
What information do we need to send to RBI about vendors?
You must provide names, addresses, telephone/fax numbers, and email addresses of vendors from whom you procured currency handling machines (sorting machines, ATMs, currency exchange machines, note counting machines).
What is the deadline for submitting vendor details?
The information must be sent to RBI latest by June 15, 2005.