No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2007-2008/29 · issued 02 Jul 2007 · ~2 min read
Quick answerRBI consolidated instructions on detecting and impounding counterfeit banknotes. All bank branches and treasuries must stamp, impound, issue receipts, file FIRs with police, and report to RBI. Forged Notes Vigilance Cells at bank HOs are mandatory.
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.
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 '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
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-19 16:09 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 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.
📜 Read the original circular — full text as issued by RBI
RBI/2007-2008/29
DCM(FNV ) No.G-1/16.01.05/ 2007-08
July 2, 2007
The Chairman /Managing Director,
All Commercial/Cooperative Banks/RRBs/Private Banks/
Foreign Banks and Director of Treasuries of all States.
Dear Sir/Madam,
Master Circular – Detection and impounding of counterfeit banknotes
Please refer to the Master Circular DCM(FNVD) No. G-48/16.01.01/ 2006-07 dated August 31,2006 .consolidating the instructions issued till June 30,2006 relating to detection and impounding of counterfeit banknotes . The Master Circular has been suitably updated by incorporating the instructions issued till date and has been placed on the RBI website (www.rbi.org.in).
The Master Circular is a compilation of the instructions contained in the circulars issued by RBI on the above subject which are operational as on the date of this Circular.
Yours faithfully,
( U.S.Paliwal )
Chief General Manager
CONTENTS
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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2007-2008/29 · issued 02 Jul 2007. 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=3643&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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