RBI directs banks in border districts to install note authentication, sorting machines
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New Delhi, July 31 : The Reserve Bank of India on Friday directed banks to equip branches in districts bordering other countries with note authentication and sorting machines.
The direction came after the central bank noticed that some lenders’ efforts to detect counterfeit currency were inadequate.
In a circular, the RBI said banks must ensure all banknotes received are examined for authenticity using machines and that counterfeit notes be impounded in all cases.
It directed banks to train every employee handling cash about the security features of genuine banknotes to enable them to detect counterfeit notes.
Counterfeit notes must not be returned to the tenderer or destroyed at the bank, the RBI said, adding that detected Fake Indian Currency Notes (FICNs) must be reported as per prescribed guidelines.
As per the instructions issued in April, all bank branches or identified back offices should have ultra-violet lamps or note sorting or authentication machines to facilitate the detection of counterfeit notes.
The RBI has also directed banks to adopt a focused and target-based approach for conducting awareness and refresher programmes for cash handling staff on the security features of genuine banknotes and detection of FICNs.
"It shall be ensured that all the cash handling staff of the bank are imparted training positively by October 31, 2026," the circular said.
RBI had also asked lenders to use their Forged Note Vigilance (FNV) cells to analyse the FICN data of their bank to identify hotspots, monitor trends and focus their outreach and capacity-building efforts accordingly.
“When a banknote tendered at the counter of a bank branch or back office is found to be counterfeit, an acknowledgement receipt in the prescribed format must be issued to the tenderer, after stamping the note,” the April circular said.
The receipt, in running serial number, shall be authenticated by the cashier and tenderer, it said adding that a notice to this effect shall be displayed prominently at the offices or branches.
The direction came after the central bank noticed that some lenders’ efforts to detect counterfeit currency were inadequate.
In a circular, the RBI said banks must ensure all banknotes received are examined for authenticity using machines and that counterfeit notes be impounded in all cases.
It directed banks to train every employee handling cash about the security features of genuine banknotes to enable them to detect counterfeit notes.
Counterfeit notes must not be returned to the tenderer or destroyed at the bank, the RBI said, adding that detected Fake Indian Currency Notes (FICNs) must be reported as per prescribed guidelines.
As per the instructions issued in April, all bank branches or identified back offices should have ultra-violet lamps or note sorting or authentication machines to facilitate the detection of counterfeit notes.
The RBI has also directed banks to adopt a focused and target-based approach for conducting awareness and refresher programmes for cash handling staff on the security features of genuine banknotes and detection of FICNs.
"It shall be ensured that all the cash handling staff of the bank are imparted training positively by October 31, 2026," the circular said.
RBI had also asked lenders to use their Forged Note Vigilance (FNV) cells to analyse the FICN data of their bank to identify hotspots, monitor trends and focus their outreach and capacity-building efforts accordingly.
“When a banknote tendered at the counter of a bank branch or back office is found to be counterfeit, an acknowledgement receipt in the prescribed format must be issued to the tenderer, after stamping the note,” the April circular said.
The receipt, in running serial number, shall be authenticated by the cashier and tenderer, it said adding that a notice to this effect shall be displayed prominently at the offices or branches.
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Note: The content of this article is sourced from a news agency and has not been edited by the ap7am team.