What changed
This Master Circular updates the previous year's version by incorporating all instructions issued up to June 30, 2012. It consolidates existing operational guidelines on counterfeit note detection and impounding without introducing new policy changes.
What it means for you
Banks must ensure strict adherence to standardized procedures for handling counterfeit notes, including stamping, receipt issuance, and police reporting. The circular reinforces the need for staff training, nodal officer designation, and infrastructure like UV lamps. Non-compliance could lead to regulatory scrutiny.
What you must do
- Ensure all branches have the 'COUNTERFEIT BANKNOTE' stamp (5 cm x 5 cm) and maintain a separate register for impounded notes.
- Issue acknowledgement receipts (Annex I) to tenderers for every counterfeit note detected, even if they refuse to sign.
- Designate a Nodal Bank Officer and establish a Forged Notes Vigilance Cell at head office.
- Train staff on security features and use of UV lamps for examining notes before issuing over counters or feeding ATMs.
- Report counterfeit note detections to police: for up to 4 pieces per transaction, send consolidated monthly report; for 5 or more pieces, file FIR immediately.
Who it affects
All commercial banks (public, private, foreign), Cooperative banks and Regional Rural Banks, Treasuries and Sub-Treasuries, Issue Offices of RBI
How should we report counterfeit notes to the police?
For up to 4 counterfeit notes in a single transaction, send a consolidated report (Annex II) along with the notes to the nodal police station by month-end. For 5 or more pieces, file an FIR (Annex III) immediately with the local police.