Source: Reserve Bank of India · RBI/2010-2011/91 · issued 01 Jul 2010 · ~1 min read
Quick answerRBI issued a 2010 master circular consolidating rules for detecting and impounding counterfeit notes. Banks must stamp, record, and issue receipts for fakes, file FIRs, train staff, and set up Forged Note Vigilance Cells. Compliance is mandatory for all commercial, cooperative, and foreign banks.
What changed
This master circular updates the previous 2009 version by incorporating all instructions issued up to June 30, 2010. It consolidates existing operational guidelines on counterfeit note handling into a single reference document.
What it means for you
Banks must ensure all branches follow uniform procedures for stamping counterfeit notes with a 5x5 cm stamp, issuing receipts to tenderers, and filing FIRs with police. Training staff on security features and providing UV lamps is mandatory. Non-compliance could lead to regulatory action.
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
Train all cash-handling staff on security features and counterfeit detection procedures.
Ensure each branch has a 'COUNTERFEIT BANKNOTE' stamp (5x5 cm) and a register to record impounded notes.
Issue acknowledgement receipts (Annex I format) to tenderers for any counterfeit note detected.
File FIR (Annex II) with local police for each counterfeit note detected across the counter and send copy to FNVC.
Establish a Forged Note Vigilance Cell at your bank's head office to coordinate reporting and preservation.
Who it affects
All commercial banks (public, private, foreign), Cooperative banks and Regional Rural Banks, Treasuries and sub-treasuries, Reserve Bank Issue Offices
RBI’s words: “Please refer to the Master Circular DCM (FNVD) No.G-4/16.01.05/ 2010-11 dated July 1, 2010 consolidating the instructions”
📜 Read the original circular — full text as issued by RBI
RBI/2010-2011/91
DCM (FNVD) No. G.4 /16.01.05/ 2010-2011
July 1, 2010
The Chairman / Managing Director,
All Commercial / Cooperative Banks / RRBs /
Private Banks / Foreign Banks /
Director of Treasuries of all States
Dear Sir/Madam,
Master Circular – Detection and Impounding of Counterfeit Notes
Please refer to the Master Circular DCM (FNVD) No.G-4/16.01.05/ 2008-09 dated July 1, 2009 consolidating the instructions issued till June 30,2009 relating to detection and impounding of Counterfeit Notes. The Master Circular has been since been 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,
(R. Gandhi)
Chief General Manager
Master Circular – 2010
CONTENTS
Para No
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-2011/91 · issued 01 Jul 2010. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 03 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=5828&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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