Master Circular – Detection and Impounding of Counterfeit Notes - RBI - Reserve Bank of India
Master Circular – Detection and Impounding of Counterfeit Notes
RBI/2009-2010/91 July 1, 2009 The Chairman / Managing Director, Dear Sir/Madam, Master Circular – Detection and Impounding of Counterfeit Notes Please refer to the Master Circular DCM (FNVD) No.G-1/16.01.05/ 2008-09 dated July 1, 2008 consolidating the instructions issued till June 30,2008 relating to detection and impounding of Counterfeit Notes. The Master Circular has been suitably updated by incorporating the instructions issued till date and has been placed on the RBI website www.rbi.org.in. The Master Circular is a compilation of the instructions contained in the circulars issued by RBI on the above subject which are operational as on the date of this Circular. Yours faithfully, (U. S. Paliwal) Master Circular – 2009 RESERVE BANK OF INDIA MASTER CIRCULAR - 2009 Para 1 Authority to impound Counterfeit Notes The Counterfeit Notes can be impounded by - Para 2 Stamping and impounding of the counterfeit banknote Each banknote, which, on examination of various security features / parameters, is determined as a counterfeit one, shall be branded with a stamp "COUNTERFEIT BANKNOTE". For this purpose, a stamp with a uniform size of 5 cm x 5 cm with the following inscription may be used. COUNTERFEIT BANKNOTE IMPOUNDED Para 3 Issue of Receipt to the Tenderer When a banknote tendered at the counter of RBI Issue Office or a bank branch or treasury is found to be counterfeit, an acknowledgement receipt in the format as per Annex I should be issued to the tenderer, after stamping the note as in paragraph 2 ibid. The receipt, in running serial numbers, should be in duplicate and should be authenticated by the cashier as well as by the tenderer. Notice to this effect should be displayed prominently at the offices / branches for the information of the public. Acknowledgement receipt may be issued even in cases where the tenderer is unwilling to countersign the receipt.Para 4 Processing of Counterfeit Notes detected in cash tenders received by bank branch/Treasury -Lodging of FIR A Counterfeit Note detected in the cash received by the bank branch/Treasury, across the counter shall be impounded in the presence of the tenderer, in the manner detailed in para 2 above. It shall be forwarded to local police authorities for investigation by filing the FIR (Annex II). A copy of the FIR shall be sent to the Forged Note Vigilance Cell constituted at the Head Office of the bank (only in the case of banks), and in the case of the Treasury, it should be sent to the Issue Office of RBI concerned. Particulars such as name, address of the tenderer and his / her statement as to how the said note came into his / her possession shall also be forwarded to police authorities. FIR is required to be filed in respect of each case of detection of counterfeit note irrespective of the number of pieces and bonafides of the tenderer. Acknowledgement of Police authorities concerned has to be obtained in respect of note/s forwarded to them. If the Counterfeit Notes are sent to Police by insured post, acknowledgement of receipt thereof by the Police should be invariably obtained and kept on record. A proper follow-up of receipt of acknowledgement from the police authorities is necessary. In case of any difficulty faced by the Offices / Branches due to reluctance of the Police to accept FIRs, the matter may be sorted out in consultation with the Nodal Officer of the State concerned. A list of Nodal Officers of the Central Bureau of Investigation designated to coordinate matters relating to investigation of counterfeit banknote cases is enclosed as Annex VII It is necessary to ensure that the cash handling Staff in bank branches / currency chests, and Treasuries / Sub-Treasuries is fully conversant with the security features of a banknote With a view to educating the branch staff on detection of Counterfeit Notes, the design and security features of all the banknotes shown in Annex VI have been supplied to all the banks / treasuries with instructions to display them prominently at the branches for information of the public. Posters of the 2000 and 2005-06 series of banknotes have also been supplied to bank branches for display at the branches. The Controlling Offices / Training Centres may also organise / conduct-training programmes on the security features of banknotes for members of staff to enable detection of Counterfeit Notes at the point of receipt itself. If necessary, they may take assistance of the officers from the nearest Issue Office of RBI. Para 6 Examination of banknotes before issuing over counters , feeding ATMs , and remitting to Issue Offices of RBI With a view to ensuring detection of Counterfeit Notes, it is necessary that all the notes received at the branches are carefully examined. Currency Chest branches / other bank branches, which are equipped with Note Sorting Machines (NSMs) should necessarily process all the notes received especially Rs.100 and above denomination. It must further be ensured that in no case, the Counterfeit Notes are mixed up, even inadvertently, in the cash issued to the public or remittances sent to other bank branches / RBI offices. In order to obviate complaints regarding receipt of Counterfeit Notes through ATMs, and to curb circulation of counterfeits it is imperative to put in place adequate safeguards/checks before loading ATMs with notes. The Government of India and the National Security Council has taken a view that dispensation of Counterfeit Notes through the ATMs would be construed as an attempt to circulate the Counterfeit Notes by the bank concerned. Para 7 Establishment of Forged Note Vigilance Cell at Head Office of the bank Each bank shall establish at its Head Office, a Forged (Counterfeit) Note Vigilance Cell to undertake the following functions:
Forged Note Vigilance Cell shall submit a Status Report covering the aforesaid aspects to the Chief General Manager, Department of Currency Management, Reserve Bank of India, Central Office, Amar Building, Fourth Floor, Sir P. M. Road, Fort, Mumbai 400 001, and to the Issue office of the Regional office of RBI under whose jurisdiction the FNV Cell is functioning, on a quarterly basis, within a fortnight from conclusion of the quarter under report. With a view to updating the record of the addresses of the Forged Note Vigilance Cells, the bank shall furnish by e-mail, in the prescribed proforma (Annex III), the address etc. particulars to RBI every year, as on 1st July. Para 8 Provision of ultra-violet lamps & other infrastructure Para 9 Reporting of data by bank branches Data on Counterfeit Notes detected by all the branches of the bank shall be reported in the prescribed format, on a monthly Basis A statement as per Annex IV - showing the details of Counterfeit Notes detected in the bank branches during the month shall be compiled and forwarded to the following offices so as to reach them by 7th of the next month: A “nil “report may be sent in case no counterfeit has been detected during the month Para 10 Preservation of Counterfeit Notes received from police authorities |