Master Circular on Counterfeit Note Detection and Impounding

Processing of Counterfeit Notes detected in cash tenders received by bank branch/Treasury -Lodging of FIR A Counterfeit Notedetected in the cash received by the bank branch/Treasury, across the counter shall be impounded in the presence of the tenderer , in the manner detailed in para 2 above. It shall be forwarded to local police authorities for investigation by filing the FIR ( Annex II ). A copy of the FIR shall be sent to the Forged Note Vigilance Cell constituted at the Head Office of the bank (only in the case of banks), and in the case of the Treasury, it should be sent to the Issue Office of RBI concerned. Particulars such as name, address of the tenderer and his / her statement as to how the said note came into his / her possession shall also be forwarded to police authorities. FIR is required to be filed in respect of each case of detection of counterfeit note irrespective of the number of pieces and bonafides of the tenderer. Acknowledgement of Police authorities concerned has to be obtained in respect of note/s forwarded to them. If the Counterfeit Notes are sent to Police by insured post, acknowledgement of receipt thereof by the Police should be invariably obtained and kept on record. A proper follow-up of receipt of acknowledgement from the police authorities is necessary. In case of any difficulty faced by the Offices / Branches due to reluctance of the Police to accept FIRs, the matter may be sorted out in consultation with the Nodal Officer of the State concerned. A list of Nodal Officers of the Central Bureau of Investigation designated to coordinate matters relating to investigation of counterfeit banknote cases is enclosed as Annex VII In no case, the Counterfeit Notes should be returned to the tenderer or destroyed by the bank branches / treasuries. In case of suspected foreign currency note received for opinion from police/government agencies, etc., the sender may be advised to forward the same to the Interpol Wing of the CBI, New Delhi after prior consultation. The definition of 'counterfeiting' in the Indian Penal Code covers currency notes issued by a foreign government authority as well. The data on detection of counterfeit Indian notes at bank branches & treasuries should be included in the monthly returns forwarded to the RBI Issue Offices as indicated in para 9 below.

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-2009/87 · issued 01 Jul 2008. The plain-English explanation above is BankPulse’s own independent summary.

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