BIS Standards Mandatory for Note Sorting Machines from May 1, 2025
Current · Source: Reserve Bank of India · RBI/2024-2025/86 · issued 30 Oct 2024 · ~1 min read
Quick answerFrom May 1, 2025, banks must deploy only Note Sorting Machines (NSMs) that conform to BIS standard IS 18663:2024 and are BIS-certified. This replaces earlier 2022 guidelines and aims to strengthen banknote sorting quality across India.
The rule, in the simplest words
From May 1, 2025, banks must use only Note Sorting Machines (machines that count and sort cash notes) that follow the BIS standard IS 18663:2024 and have a BIS certification (official approval from the Bureau of Indian Standards).
This rule replaces the older July 2022 guidelines on note‑sorting authentication and fitness parameters.
If a bank keeps using machines that are not BIS‑certified, it could face operational problems or regulatory penalties.
Banks should audit their current machines, plan to buy or upgrade to BIS‑certified models before the deadline, work with vendors for certification, and update policies and training for cash‑handling teams.
How it plays out — a real example
Rohit, a cash‑management officer at State Bank of India in Mumbai, reviews the bank’s list of Note Sorting Machines in April 2025. He finds two older models that lack BIS certification, so he contacts the vendor to order a new BIS‑certified machine that meets IS 18663:2024 and updates the team’s training guide, ensuring the bank will be ready before the May 1, 2025 deadline.
What changed
RBI has mandated that from May 1, 2025, all new NSM deployments must comply with the BIS standard IS 18663:2024, published on March 19, 2024, after due consultation with RBI and other stakeholders. This circular references the earlier July 2022 circular on authentication and fitness sorting parameters.
What it means for you
Banks must ensure only BIS-certified models are deployed after the deadline. This will standardize note sorting quality, reduce counterfeit acceptance, and improve fitness detection across the banking system. Non-compliance could lead to operational or regulatory risks.
What you must do
Audit your current NSM inventory to identify models that do not meet IS 18663:2024 standards.
Plan procurement or upgrade of BIS-certified NSMs before May 1, 2025, to ensure compliance.
Coordinate with vendors to obtain BIS certification for existing or new NSM models.
Update internal policies and training for cash management teams on the new standards.
Who it affects
All scheduled commercial banks, Cash management and treasury departments, NSM vendors and service providers, Banknote processing and sorting operations
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What is the key deadline for NSM compliance?
From May 1, 2025, banks must deploy only NSM models that conform to BIS standard IS 18663:2024 and are duly certified by BIS.
Does this circular apply to existing NSMs already in use?
The circular does not address existing machines; it only states that from May 1, 2025, banks should deploy only compliant models. Banks should assess their current inventory for compliance.
Where can I find the full BIS standard?
The standard IS 18663:2024 is available at the link provided in the circular: https://www.services.bis.gov.in/tmp/LITD42522283_07032024_1.pdf
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
RBI’s words: “extend the timeline for implementation of the instructions by six months”
📜 Read the original circular — full text as issued by RBI
RBI/2024-2025/86
DCM (NPD) No.S2193/09.45.000/2024-25
October 30, 2024
The Chairman / Managing Director / Chief Executive Officer
All Banks
Madam / Dear Sir,
Note Sorting Machines: Standards issued by the Bureau of Indian Standards
Reference is invited to our circular DCM (NPD) No.S488/18.00.14/2022-23 dated July 01, 2022 on “Note Sorting Machines - Authentication and Fitness Sorting Parameters”.
2. With a view to further strengthen the banknote sorting architecture across the country, the Bureau of Indian Standards (BIS) after due consultation with Reserve Bank of India and other stakeholders, had published the standards for Note Sorting Machines (NSM) – ‘IS 18663: 2024’ in the ‘Gazette of India’ on March 19, 2024. The standards are available at https://www.services.bis.gov.in/tmp/LITD42522283_07032024_1.pdf .
3. As a step further in this regard, it has been decided that effective May 01, 2025, banks should deploy only such NSM models that conform to the aforesaid Indian Standards and are duly certified by BIS.
Yours faithfully
(Sanjeev Prakash)
Chief General Manager-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2024-2025/86 · issued 30 Oct 2024. The plain-English explanation above is BankPulse’s own independent summary.
Example: if you are a Compliance officer at a bank this circular applies to (All scheduled commercial banks, Cash management and treasury departments, NSM vendors and service providers, Banknote processing and sorting operations), your first concrete step on “BIS Standards Mandatory for Note Sorting Machines from May 1, 2025” is: “Audit your current NSM inventory to identify models that do not meet IS 18663:2024 standards.” (RBI issued this 30 Oct 2024).
Circular: RBI/2024-2025/86 -- BIS Standards Mandatory for Note Sorting Machines from May 1, 2025
Issued: 30 Oct 2024
Action required: Audit your current NSM inventory to identify models that do not meet IS 18663:2024 standards.
Action required: Plan procurement or upgrade of BIS-certified NSMs before May 1, 2025, to ensure compliance.
Action required: Coordinate with vendors to obtain BIS certification for existing or new NSM models.
Action required: Update internal policies and training for cash management teams on the new standards.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
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=12745&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.
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