What changed
This 2007 Master Circular updates the previous 2006 circular by incorporating all instructions issued up to July 2, 2007. It consolidates existing rules on authority to impound, stamping, receipt issuance, FIR filing, and data reporting for counterfeit banknotes.
What it means for you
Banks must ensure all branches have the authority and infrastructure (e.g., UV lamps) to detect and impound counterfeit notes. Strict procedures—stamping, issuing receipts, filing FIRs even for single notes—are non-negotiable. Non-compliance could invite regulatory scrutiny.
What you must do
- Ensure all branches have 'COUNTERFEIT BANKNOTE' stamps (5 cm x 5 cm) and use them on suspected notes.
- Issue acknowledgement receipts (Annex I format) to tenderers of counterfeit notes, even if they refuse to sign.
- File FIRs with local police for all counterfeit detections, including single notes, and send copies to your bank's Forged Notes Vigilance Cell.
- Install UV lamps and other detection infrastructure at all cash-handling counters.
- Submit regular data returns on counterfeit detections to RBI as per prescribed formats.
Who it affects
All commercial banks (public, private, foreign), Cooperative banks and regional rural banks, State treasuries and sub-treasuries, RBI Issue Offices
What should we do if a customer refuses to sign the receipt for a counterfeit note?
Issue the receipt anyway and note the refusal. The circular states that acknowledgement receipts may be issued even if the tenderer is unwilling to countersign.
Do we need to file an FIR for a single counterfeit note detected from a seemingly genuine customer?
Yes. FIRs must be filed in all cases of counterfeit detection, including one or two pieces from individuals whose bonafides are not suspect.
What if the local police are reluctant to accept the FIR?
Contact the Nodal Officer of the State Police Force designated for coordination. The circular provides a list of such officers to resolve difficulties.