What changed
This Master Circular consolidates instructions issued till date, as of July 1, 2008, and is placed on the RBI website.
What it means for you
Banks must ensure all branches follow uniform procedures for stamping, impounding, and recording counterfeit notes. The circular reinforces the need for staff training, FIR filing with police, and data reporting to the Forged Note Vigilance Cell. Non-compliance could lead to regulatory scrutiny.
What you must do
- Train all cash-handling staff on security features and counterfeit detection procedures.
- Ensure each branch has a 'COUNTERFEIT BANKNOTE' stamp (5 cm x 5 cm) and a separate register for impounded notes.
- Issue acknowledgement receipts (Annex I format) to tenderers and file FIRs (Annex II) with local police for every counterfeit note detected.
- Establish a Forged Note Vigilance Cell at your bank's head office.
- Provide Ultra-Violet lamps and necessary infrastructure at all branches for note examination.
Who it affects
All commercial banks (public, private, foreign), Cooperative banks and Regional Rural Banks, Treasuries and Sub-treasuries, RBI Issue Offices
What should we do if a customer refuses to countersign the receipt for a counterfeit note?
Issue the acknowledgement receipt anyway, even if the tenderer is unwilling to countersign. The receipt must still be authenticated by the cashier.
How should we handle counterfeit notes detected in cash received from another bank or customer?
Impound the note in the presence of the tenderer, stamp it, issue a receipt, and file an FIR with local police. Send a copy of the FIR to your bank's Forged Note Vigilance Cell.
Is it mandatory to have a Forged Note Vigilance Cell at our head office?
Yes, the circular requires banks to establish such a cell at their head office.