No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2005-06/173 · issued 30 Sep 2005 · ~2 min read
Quick answerRBI updated its 2004 Master Circular on counterfeit banknote handling. All bank branches and treasuries must impound suspected fakes, stamp them, issue receipts, and file FIRs with police for every detection, even single notes from individuals.
What changed
The Reserve Bank updated its August 2004 Master Circular on counterfeit banknote procedures, incorporating all instructions issued up to September 2005. The updated circular consolidates authority to impound, stamping requirements, receipt issuance, and mandatory FIR filing for all counterfeit detections.
What it means for you
Banks and treasuries must strictly follow the updated protocol: every suspected counterfeit note must be stamped 'COUNTERFEIT BANKNOTE' and impounded, with a receipt given to the tenderer. All detections, even single notes from seemingly bonafide individuals, require filing an FIR with local police and reporting to the bank's Forged Notes Vigilance Cell or RBI Issue Office.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Ensure all branches have the 'COUNTERFEIT BANKNOTE' stamp (5 cm x 5 cm) and use it on every suspected fake note.
Issue acknowledgement receipts (Annexure I format) to tenderers for all impounded counterfeit notes, even if they refuse to sign.
File FIRs (Annexure II) with local police for every counterfeit detection, including single notes, and send a copy to your Forged Notes Vigilance Cell.
Display notices at branches informing the public about the impounding and receipt process.
Coordinate with state Nodal Officers if police are reluctant to accept FIRs.
Who it affects
All commercial banks (public, private, foreign), Co-operative banks and Regional Rural Banks, Treasuries and Sub-treasuries, RBI Issue Offices, Bank branch cashiers and tellers
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-19 19:44 IST
Status change: withdrawn05 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What should we do if a customer refuses to sign the receipt for a counterfeit note?
Issue the receipt anyway. The circular states that an acknowledgement receipt may be issued even if the tenderer is unwilling to countersign it.
Do we need to file an FIR for just one counterfeit note from a customer?
Yes. FIRs are required for all cases of detection, including one or two pieces from individuals whose bonafides are not suspect.
What if the local police refuse to accept our FIR?
Contact the Nodal Officer of the concerned state to resolve the issue, as per the circular's guidance.
📜 Read the original circular — full text as issued by RBI
Machine readable windowed demetalised clear text magnetic security thread with inscriptions `Bharat’ (in Hindi) and RBI on notes of Rs.100 with exclusive colour shift. Colour of the thread shall shift from green to blue when viewed from different angles. It will fluoresce in yellow on the reverse and the text will fluoresce on the obverse under U.V.light –width – 2 m.m. The Intaglio Printing i.e.raised prints is more prominent in the name of the Bank in Hindi and English, the Reserve Bank Seal, guarantee and promise clause, Ahsoka Pillar Emblem on the left, RBI Governor’s signature. A square in intaglio on the left of the watermark window with increased depth of engraving helps the visually impaired to identify the denomination Optical fibres are in dual colour. The small floral design printed both on the front (hollow) and back(filled up) of the banknote in the middle of the vertical band next to the watermark window has an accurate back to back registration so that the numeral appears as one when seen against the light.
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2005-06/173 · issued 30 Sep 2005. The plain-English explanation above is BankPulse’s own independent summary.
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
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=2527&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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