What changed
This is an updated master circular replacing the July 1, 2010 version, incorporating all instructions issued up to June 30, 2011. No new policy changes are introduced; it consolidates existing operational guidelines.
What it means for you
Banks must ensure strict adherence to the standardized process for handling counterfeit notes, including stamping, impounding, issuing receipts, and lodging FIRs. Non-compliance could lead to regulatory scrutiny. The circular reinforces the need for staff training and infrastructure like UV lamps to detect fakes.
What you must do
- Ensure all branches have the 'COUNTERFEIT BANKNOTE' stamp (5 cm x 5 cm) and maintain a register for impounded notes.
- Issue acknowledgement receipts (Annex I format) to tenderers of counterfeit notes, even if they refuse to sign.
- File FIRs with local police for each counterfeit note detected across the counter and send a copy to the Forged Note Vigilance Cell.
- Train staff on examining banknotes before issuing over counters, feeding ATMs, and remitting to RBI Issue Offices.
- Install ultra-violet lamps and other infrastructure at all branches for counterfeit detection.
Who it affects
All commercial banks (public, private, foreign), Cooperative banks and Regional Rural Banks, Treasuries and sub-treasuries, RBI Issue Offices
What is the size of the stamp to be used for impounding counterfeit notes?
The stamp must be 5 cm x 5 cm with the inscription 'COUNTERFEIT BANKNOTE IMPOUNDED' along with bank/treasury branch, signature, and date.
Do we need to issue a receipt if the tenderer refuses to sign?
Yes, the acknowledgement receipt must be issued even if the tenderer is unwilling to countersign it.
What should we do with a counterfeit note detected across the counter?
Impound it in the presence of the tenderer, stamp it, issue a receipt, and forward it to local police by filing an FIR. Send a copy of the FIR to the Forged Note Vigilance Cell at your bank's head office.