“The instructions contained in our Master Direction dated April 03, 2023, on detection, reporting, and monitoring of counterfeit notes shall be meticulously followed,” it has added.
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As per the RBI master directions:
(i) “Banknotes tendered over the counter shall be examined for authenticity through machines.”
(ii) If any note is found by the bank to be counterfeit no credit of the same is to be given to the customer.
(iii) Notes determined as counterfeit shall be stamped as “COUNTERFEIT NOTE” and impounded in the prescribed format. Each such impounded note shall be recorded under authentication, in a separate register.
(iv)”In no case, the Counterfeit Notes shall be returned to the tenderer or destroyed by the bank branches. Failure of the banks to impound Counterfeit Notes detected at their end will be construed as wilful involvement of the bank concerned in circulating Counterfeit Notes and penalty will be imposed.”
(v) When a banknote tendered is found to be counterfeit, an acknowledgement receipt in the prescribed format must be issued to the tenderer by the bank branch.
(vi) The master direction also outlines how the detection of counterfeit notes is to be reported to the police. It states: (a) For cases of detection of Counterfeit Notes up to four (04) pieces in a single transaction, a consolidated report in the prescribed format is to be sent by the Nodal Bank Officer to the police along with the suspect Counterfeit Notes, at the end of the month.
(b)For cases of detection of Counterfeit Notes of five (05) or more pieces in a single transaction, the Counterfeit Notes shall be forwarded immediately by the Nodal Bank Officer to the local police authorities or the Nodal Police Station for investigation by filing FIR in the prescribed format.
(c)A copy of the monthly consolidated report/FIR shall be sent to the Forged Note Vigilance Cell constituted at the Head Office of the bank.
(d) Acknowledgement of the police authorities concerned has to be obtained for note/s forwarded to them (both for consolidated monthly statement and for filing of FIR).
(e) In order to facilitate the identification of people abetting the circulation of Counterfeit Notes, banks are advised to cover the banking hall/area and counters under CCTV surveillance and preserve the recording as per their internal policy.