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.
What you must do
- 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
What stamp should be used on a counterfeit note?
A stamp of uniform size 5 cm x 5 cm with the inscription 'COUNTERFEIT BANKNOTE' and details of bank/treasury, branch, signature, and date.
What if the tenderer refuses to sign the receipt?
The acknowledgement receipt may still be issued even if the tenderer is unwilling to countersign it.
Who is authorized to impound counterfeit notes?
All branches of public, private, foreign, cooperative banks, RRBs, all treasuries/sub-treasuries, and all RBI Issue Offices.