Source: Reserve Bank of India · RBI/2012-13/104 · issued 02 Jul 2012 · ~1 min read
Quick answerRBI consolidated instructions on detecting and impounding counterfeit notes. All bank branches and treasuries must stamp, record, and issue receipts for counterfeit notes, report to police, and train staff. Nodal officers and Forged Notes Vigilance Cells are required.
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.
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 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
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
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.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
RBI’s words: “Please refer to the Master Circular DCM (FNVD) No.G-5/16.01.05/ 2012-13 dated July 2, 2012 consolidating the instructions”
📜 Read the original circular — full text as issued by RBI
RBI/2012-13/104
DCM(FNVD) No. G- /16.01.05/ 2012-13
July 2, 2012
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-5/16.01.05/ 2011-12 dated July 1, 2011 consolidating the instructions issued till June 30, 2011 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,
(B P Vijayendra)
Chief General Manager
Encls : Master Circular
Master Circular – Detection and Impounding of Counterfeit Notes - 2012
CONTENTS
Para No
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/104 · issued 02 Jul 2012. 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=7416&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.