New Delhi, July 31, 2026 (Yes Punjab News)
The Reserve Bank of India (RBI) has directed banks to install note authentication and sorting machines at branches located in districts bordering neighbouring countries as part of measures to strengthen the detection of counterfeit currency.
The directive follows the central bank’s observation that some banks were not adequately identifying fake Indian currency notes (FICNs).
In a circular issued on Friday, the RBI instructed banks to ensure that all banknotes received at branches are examined for authenticity using note authentication or sorting machines. It also made it mandatory for banks to impound all counterfeit notes detected during transactions.
The central bank reiterated that counterfeit notes must neither be returned to customers nor destroyed at bank branches. Instead, all detected fake currency must be handled and reported in accordance with prescribed guidelines.
The RBI also directed banks to provide comprehensive training to all employees involved in cash handling so they can identify the security features of genuine banknotes and detect counterfeit currency effectively. It has set October 31, 2026, as the deadline for ensuring that all cash-handling staff receive the required training.
The circular reinforces earlier instructions issued in April, under which all bank branches or designated back offices were required to be equipped with ultra-violet lamps or note authentication and sorting machines to facilitate counterfeit detection.
In addition, banks have been asked to adopt a targeted approach to awareness and refresher programmes for cash-handling staff and to use their Forged Note Vigilance (FNV) cells to analyse counterfeit currency trends, identify vulnerable areas and strengthen monitoring and outreach efforts.
The RBI also reiterated that whenever a counterfeit note is detected at a bank counter, the customer must be issued an acknowledgement receipt in the prescribed format after the note is stamped. Banks have been directed to prominently display notices informing customers of this procedure.
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