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.
What you must do
- 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
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.