Source: Reserve Bank of India · RBI/2011-12/78 · issued 01 Jul 2011 · ~2 min read
Quick answerRBI consolidated instructions on detecting and impounding counterfeit notes. All bank branches and treasuries must stamp, impound, issue receipts, file FIRs, and report data. Staff training and UV lamps are mandatory.
What changed
This is an updated master circular replacing the July 1, 2010 version, incorporating all instructions issued up to June 30, 2011. No new policy changes are introduced; it consolidates existing operational guidelines.
What it means for you
Banks must ensure strict adherence to the standardized process for handling counterfeit notes, including stamping, impounding, issuing receipts, and lodging FIRs. Non-compliance could lead to regulatory scrutiny. The circular reinforces the need for staff training and infrastructure like UV lamps to detect fakes.
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
Ensure all branches have the 'COUNTERFEIT BANKNOTE' stamp (5 cm x 5 cm) and maintain a register for impounded notes.
Issue acknowledgement receipts (Annex I format) to tenderers of counterfeit notes, even if they refuse to sign.
File FIRs with local police for each counterfeit note detected across the counter and send a copy to the Forged Note Vigilance Cell.
Train staff on examining banknotes before issuing over counters, feeding ATMs, and remitting to RBI Issue Offices.
Install ultra-violet lamps and other infrastructure at all branches for counterfeit detection.
Who it affects
All commercial banks (public, private, foreign), Cooperative banks and Regional Rural Banks, Treasuries and sub-treasuries, RBI Issue Offices
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What is the size of the stamp to be used for impounding counterfeit notes?
The stamp must be 5 cm x 5 cm with the inscription 'COUNTERFEIT BANKNOTE IMPOUNDED' along with bank/treasury branch, signature, and date.
Do we need to issue a receipt if the tenderer refuses to sign?
Yes, the acknowledgement receipt must be issued even if the tenderer is unwilling to countersign it.
What should we do with a counterfeit note detected across the counter?
Impound it in the presence of the tenderer, stamp it, issue a receipt, and forward it to local police by filing an FIR. Send a copy of the FIR to the Forged Note Vigilance Cell at your bank's head office.
📜 This document’s life story (2 recorded events, each backed by RBI’s own words)
RBI’s words: “Please refer to the Master Circular DCM (FNVD) No.G-5/16.01.05/ 2011-12 dated July 1, 2011 consolidating the instructions”
📜 Read the original circular — full text as issued by RBI
RBI/2011-12/78
DCM(FNVD) No.G-5/16.01.05/ 2011-12
July 1, 2011
The Chairman / Managing Director,
Commercial Banks,Cooperative Banks, RRBs /
Private Banks,Foreign Banks and
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/ 2010-11 dated July 1, 2010 consolidating the instructions issued till June 30,2010 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,
(Dr. N Krishna Mohan)
Chief General Manager
Master Circular – 2011
CONTENTS
Para No
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2011-12/78 · issued 01 Jul 2011. The plain-English explanation above is BankPulse’s own independent summary.
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
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=6548&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.
Help us keep this accurate
Found an inaccuracy or have an improvement? Tell us. Every report is reviewed by our team before any change is made — nothing goes live unverified.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
BANKPULSE · FREE DAILY BRIEF
Get RBI updates for your role
Every important RBI update, decoded in plain English — for your career, exams & financial awareness.
We collect only your email, name and role, used solely to send your brief — never sold or shared. Withdraw anytime via the unsubscribe link in any email. Independent platform, not affiliated with the RBI. Information, not legal advice.
REPORT AN ERROR · BETA
Spotted an error? Earn 500 BankPulse Credits
Help us stay accurate. If your correction is verified true and approved by our founder, you earn 500 BankPulse Credits — redeemable when the platform monetises.
Reviewed by a human before any credit is awarded. We never change the site from crowd input without verification.
WANT A NEW FEATURE · BETA
What would make BankPulse more useful for you?
Tell us what to build next — a tool, a data view, a role page, anything. We read every suggestion.
Thank you — your ideas directly shape what we build.