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Master Direction on Counterfeit Notes 2024: Detection & Reporting

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/DCM/2024-25/115 · issued 01 Apr 2024 · ~1 min read

Quick answerRBI consolidated all counterfeit note guidelines into a single Master Direction effective April 1, 2024. Banks must impound fake notes, never return them, issue receipts, and report to police and RBI. Non-compliance invites penalties for wilful circulation.

What changed

RBI issued a comprehensive Master Direction replacing all previous circulars on counterfeit notes, consolidating instructions under one reference. Key updates include mandatory machine-based authentication for all over-the-counter and bulk tenders, and explicit penalty for failure to impound.

What it means for you

Banks must now ensure every note tendered is machine-checked; no manual bypass allowed. Credit cannot be given for counterfeit notes, and they must be stamped and impounded. This tightens operational discipline and shifts liability to banks for any lapse, with penalties for non-compliance.

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

Implement mandatory machine-based authentication for all over-the-counter and bulk note tenders.
Stamp all detected counterfeit notes as 'COUNTERFEIT NOTE' and impound them in a separate register.
Issue acknowledgement receipts (Annex II) to tenderers and display public notices.
Report all counterfeit detections to local police and RBI Issue Offices as per prescribed formats.
Designate a nodal officer and establish a Forged Notes Vigilance Cell at head office.

Who it affects

All scheduled commercial banks, Currency chest operators, Bank branch staff handling cash, Nodal officers for counterfeit detection, Forged Notes Vigilance Cells

❓ Common questions

Regulatory timeline

Stated effective date effective April 1, 2024
Decoded by BankPulse 2026-06-18 03:30 IST
Status change: withdrawn 03 Aug 2026, 04:00 IST

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What happens if a bank fails to impound a counterfeit note?

Failure to impound is treated as wilful involvement in circulating counterfeit notes, and RBI will impose penalties on the bank.

Can a customer get credit for a counterfeit note detected at the counter?

No. No credit can be given to the customer's account for any note found counterfeit, whether at the counter or back office.

What reporting is required to RBI under this Master Direction?

Banks must submit monthly reports to RBI Issue Offices on counterfeit notes detected, and half-yearly reports on Forged Notes Vigilance Cell activities.

📜 Read the original circular — full text as issued by RBI

Issued in the Mahatma Gandhi (New) Series.

 The base colour of the note is magenta. The note has other designs, geometric patterns aligning with the overall colour scheme, both at the obverse and reverse. 

 See through register with denominational numeral 2000. 

 Latent image with denominational numeral 2000. 

 Denominational numeral २००० in Devnagari. 

 Portrait of Mahatma Gandhi at the centre. 

 Micro letters ‘RBI’ and ‘2000’ on the left side of the banknote.

 Windowed security thread with inscriptions ‘भारत’, RBI and 2000 on banknotes with colour shift. Colour of the thread changes from green to blue when the note is tilted. 

 Guarantee Clause, Governor’s signature with Promise Clause and RBI emblem towards right

 Denominational numeral with Rupee Symbol, ₹2000 in colour changing ink (green to blue) on bottom right.

 Ashoka Pillar emblem on the right Mahatma Gandhi portrait and electrotype (2000) watermarks.

 Number panel with numerals growing from small to big on the top left side and bottom right side. For visually impaired Intaglio or raised printing of Mahatma Gandhi portrait, Ashoka Pillar emblem, bleed lines and identity mark.

 Horizontal rectangle with ₹2000 in raised print on the right. 

 Seven angular bleed lines on left and right side in raised print.

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/DCM/2024-25/115 · issued 01 Apr 2024. The plain-English explanation above is BankPulse’s own independent summary.

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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=12653&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.