What changed
RBI issued an updated Master Circular (RBI/2009-2010/91) on July 1, 2009, replacing the 2008 version. It consolidates all operational instructions on counterfeit note detection and impounding as of that date, with no new policy changes but a refreshed compilation.
What it means for you
Banks must ensure strict adherence to procedures for stamping counterfeit notes, issuing receipts, and filing FIRs. Non-compliance could lead to regulatory scrutiny. The circular reinforces the need for staff training, UV lamp availability, and Forged Note Vigilance Cells at bank HOs.
What you must do
- Train all cash-handling staff on security features and counterfeit detection procedures.
- Ensure every branch has a 5 cm x 5 cm 'COUNTERFEIT BANKNOTE' stamp and a separate register for impounded notes.
- Issue acknowledgement receipts (Annex I format) to tenderers and display public notice about the process.
- Lodge FIRs with local police for all detected counterfeits and send copies to your bank's Forged Note Vigilance Cell.
- Report counterfeit note data to RBI as per the circular's reporting requirements.
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 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.
Do we need to file an FIR for every counterfeit note detected?
Yes, for any counterfeit note detected in cash tenders across the counter, you must impound it in the tenderer's presence and forward it to local police with an FIR (Annex II format).
Is it mandatory to have a Forged Note Vigilance Cell at our bank's head office?
Yes, the circular requires banks to establish a Forged Note Vigilance Cell at their head office to handle counterfeit note cases and coordinate with RBI.