What changed
RBI reviewed and revised the 'Note Authentication and Fitness Sorting Parameters' originally set in May 2010, in response to the introduction of new series banknotes. The updated guidelines are effective immediately from July 1, 2022, replacing the previous circular.
What it means for you
Banks must recalibrate their note sorting and authentication machines to align with the revised parameters, ensuring accurate detection of genuine notes and proper sorting of fit versus unfit notes. Non-compliance could lead to circulation of unfit or counterfeit notes, increasing operational and regulatory risks.
What you must do
- Update all note sorting and authentication machines with the revised parameters immediately.
- Ensure machines can identify and segregate suspected counterfeits and unfit notes as per the new criteria.
- Train staff on the updated fitness sorting criteria, including soiling, limpness, tears, and other defects.
- Verify that machines sort phased-out series notes as unfit regardless of physical condition.
Who it affects
All banks operating note sorting machines, Cash management companies and agents handling banknotes, Bank staff involved in cash processing and recycling
What is the key change in the revised guidelines?
The guidelines have been updated to account for new series banknotes, with revised fitness sorting parameters such as soiling, limpness, and tears. Banks must implement these changes immediately.
Are phased-out series notes still legal tender?
Yes, unless specified otherwise, but they are considered unfit for reissue. Machines must sort them as unfit regardless of physical condition.
Do these parameters apply to all cash handling machines?
Yes, they apply to machines that check authenticity and fitness (sorting machines) and those that check only authenticity (authentication machines), whether operated directly by banks or their agents.