What is Master Circular

Responsibility for the Confiscation of Fake Notes

The Counterfeit Notes may be confiscated in the following ways:

I All Banks

(ii) All of the Treasury and Subtreasury Departments.

(iii) Branches of the Reserve Bank of India that Issue Notes

Identification of false currency notes

The legitimacy of banknotes that are tendered over the counter, received immediately at the back office, or received directly in the currency chest through bulk tenders should be verified by machines.

If any counterfeit notes are found in the tender that is accepted over the counter or at the back office or currency chest, the customer’s account will not be credited for those notes, even if they are found.

Never under any circumstances should the counterfeit notes be given back to the tenderer or destroyed by the bank branches or treasurers. If banks fail to impound counterfeit notes after discovering them at their own locations, this will be seen as willful participation on the part of the bank concerned in the circulation of counterfeit notes, and a penalty will be levied.

Seizure and confiscation of fake currency

If notes are found to be counterfeit, they will be stamped with the words “COUNTERFEIT NOTE” and then impounded according to the manner that is specified (Annex I). Each one of these notes that has been impounded has to be entered, together with its authentication, in a separate register.

Providing the Tenderer with a Receipt

When a banknote that has been presented at the counter of a bank branch/back office and currency chest or treasury is discovered to be counterfeit, an acknowledgement receipt in the prescribed format (Annex II) must be issued to the person who presented the note, after the note has been stamped in accordance with Paragraph 2 of the aforementioned document. This must be done before the note is returned to the person who presented it. The cashier and the tenderer are responsible for providing authentication of the receipt, which should be done using running serial numbers. In order to keep the general public informed, a notice to this effect ought to be publicly displayed in all of the offices and branches.

The Detection of Counterfeit Notes and the Reporting of Such Detections to the Police and Other Bodies

At the end of each month, a consolidated report in the prescribed format (Annex III) should be sent by the Nodal Bank Officer to the police authorities or the Nodal Police Station, along with the suspect counterfeit notes, for any cases in which counterfeit notes of up to four pieces were discovered in a single transaction. In these cases, the counterfeit notes should also be submitted.

In instances where five or more pieces of counterfeit currency are found in a single transaction, the Nodal Bank Officer is responsible for forwarding the counterfeit currency to the local police authorities or the Nodal Police Station for investigation. This is done by filing a first information report (FIR) in the format that is prescribed (Annex IV).

Examination of banknotes prior to their issuance over counters, feeding of automated teller machines, and submission to issue offices of the Reserve Bank

The cash management systems of the banks ought to be realigned in such a way as to ensure that cash receipts in denominations of one hundred yen or more are not put back into circulation before being machine-verified for their authenticity. This should be done in order to prevent counterfeiting of currency. The aforementioned guidelines must be followed by every single branch of the bank, despite the amount of cash that is brought in on a daily basis. The Reserve Bank’s Directive No. 3158/09.39.00 (Policy)/2009-10, which was released on November 19, 2009, stipulates that any failure to comply will be interpreted as a violation of the policy.

It is imperative to put adequate safeguards and checks in place before loading ATMs with notes in order to eliminate complaints regarding the receipt of counterfeit notes through ATMs and to cut down on the circulation of counterfeits. This will prevent complaints from being filed regarding the receipt of counterfeit notes through ATMs. If counterfeit notes were distributed through automated teller machines (ATMs), this may be interpreted as an attempt by the bank in question to get the counterfeit notes into circulation.

The Appointment of the Nodal Bank Officer

Each bank ought to appoint a Nodal Bank Officer on a district-by-district basis and then communicate this information to the relevant Regional Office of the RBI as well as the relevant Police Authorities. Every instance of the reporting of the detection of counterfeit notes, as specified in Paragraph 5, should be done so through the Nodal Bank Officer. In addition to this responsibility, the Nodal Bank Officer will act as the central point of contact for all actions relating to the detection of counterfeit notes.

Reserve Bank of India

The Reserve Bank of India, also known as the RBI, is India’s central bank. The RBI’s primary responsibility is to manage and govern the nation’s monetary and financial infrastructure. In accordance with the Reserve Bank of India Act of 1934, it came into being as a statutory body in the year 1935. The supply and circulation of the Indian rupee are governed by the central bank of India. In addition to this, it manages the money that belongs to the central government. Both the role of the bankers’ bank and the regulation of the banking sector are under the purview of the central bank. By lending support to the government’s many initiatives and policies geared toward development, it also plays a significant part in India’s overall development story.

When the Reserve Bank of India (RBI) was first established, its headquarters were located in Kolkata. In 1937, however, those operations were relocated to Mumbai. The bank was initially held by a private individual. However, following India’s independence in 1947, in 1949 it was “nationalised,” and it is now entirely controlled by the Indian government.

Conclusion

Master Circular Scheme of Penalties for Bank Branches and Currency Chests Based on Performance Master Circular: Scheme of Penalties for Bank Branches and Currency Chests Based on Performance 250 kb. The Detection and Impoundment of Counterfeit Notes Master Circular 622 kb. The Facility for Exchange of Notes and Coins is referred to in the Master Circular.The legitimacy of banknotes that are tendered over the counter, received immediately at the back office, or received directly in the currency chest through bulk tenders should be verified by machines.