The Chairman/MD/ CMD/ CEO
Public Sector Banks, Private Sector Banks, Foreign Banks.

Madam/Dear Sir,

In the wake of increasing circulation of high quality counterfeit notes, particularly, Rs.100 and Rs.500 denominations, the Government of India had constituted a High Level Committee to consider strengthening the security features in our banknotes. The Committee's recommendations were examined and with the approval of the Govt., the Reserve Bank of India has decided to incorporate certain additional security features and make improvement in the existing ones, in the banknotes of various denominations. The new / improved / additional security features, besides acting as a deterrent to counterfeiting, will also enhance the overt features to help public in identifying the genuine banknotes.

2. The issue of banknotes with additional/revised security features is targeted for circulation in near future. New banknotes for the denominations of Rs.50 and above will be introduced during 2005 in a phased manner. As you are aware, the currency verification & processing activities have been mechanized at the RBI. The banks also have been advised to equip themselves with proper and adequate number of currency handling machines so that only the non-issuable notes are sent to the RBI for eventual disposal. The mechanization of currency handling process is under way in the banks. It, therefore, becomes imperative that the banks are aware of the proposed changes in the existing security features so as to attempt suitable adaptation to their machines. Details of new/additional overt security features for the denominations of Rs.50, Rs.100, Rs.500 and Rs.1000 are enclosed. Banks are advised to peruse the list of security features carefully, get them examined, and take appropriate steps for handling these banknotes.

3. A meeting of the Chief Executives of banks to share information on the changes in the security features of banknotes and to create an overall preparedness, will be held on a suitable date for which a separate intimation will be sent. Needless to mention, the Reserve Bank will run public awareness campaign on these features at the time of putting the new notes in circulation.

Yours faithfully

Sd/-

(U.S.Paliwal)
Chief General Manager