What changed
Previously, all counterfeit note detections required an FIR. Now, detections of up to 4 pieces in a single transaction can be reported via a consolidated monthly report to police, while 5 or more pieces still require an immediate FIR. The change follows a review with the Government of India to ensure prompt reporting.
What it means for you
Banks and treasuries now have a tiered reporting process, reducing the administrative burden for small-scale counterfeit finds. For 4 or fewer notes, monthly consolidation saves time and resources, but for 5 or more, immediate FIRs remain mandatory. This aligns with efforts to streamline currency management and improve police coordination.
What you must do
- Update branch procedures to distinguish between detections of up to 4 and 5+ counterfeit notes in a single transaction.
- For up to 4 notes, compile and send a consolidated monthly report to police using the prescribed format.
- For 5 or more notes, lodge an FIR with the nodal police station immediately.
- Ensure all staff are trained on the revised procedure and acknowledge receipt of this circular.
- Discuss reporting progress in SLBC, Standing Committee on Currency Management, and State Level Security Committee meetings.
Who it affects
Commercial banks, Cooperative banks, Regional Rural Banks (RRBs), Private banks, Foreign banks, State treasuries and sub-treasuries
What is the threshold for filing an FIR versus a monthly report?
For detection of 5 or more counterfeit notes in a single transaction, an FIR must be lodged immediately. For up to 4 notes, a consolidated monthly report to police is sufficient.
Does this circular replace all previous instructions on counterfeit notes?
No, only the FIR requirement is revised. Other instructions from the Master Circular dated July 1, 2011 remain unchanged.
What should we do if we face implementation issues?
Consult the Regional Director of RBI in your state for resolution.