Circular No. DCM (FNVD)/G-1/16.01.05/2026-27, Dated 01.04.2026
The Reserve Bank of India (RBI) has issued a Master Direction on Counterfeit Notes – Detection, Reporting and Monitoring, consolidating and updating existing guidelines applicable to banks under the Banking Regulation Act, 1949.
1. Objective of the Master Direction
The primary objective of the framework is to:
- Ensure uniform practices across banks
- Strengthen detection and reporting mechanisms for counterfeit notes
- Provide a single, comprehensive reference point for regulatory compliance
2. Scope and Coverage
The Master Direction covers:
- Detection of counterfeit currency at bank branches and currency chests
- Reporting requirements to relevant authorities
- Monitoring and control mechanisms to prevent circulation of fake notes
This ensures a consistent and structured approach across the banking system.
3. Consolidation of Existing Guidelines
The Direction consolidates multiple existing circulars and instructions into a unified framework, simplifying compliance for banks and improving regulatory clarity.
4. Withdrawal of Earlier Circulars
All earlier circulars and directions on the subject, as listed in Annex IX, stand withdrawn from the date of issuance of this Master Direction.
5. Conclusion
The issuance of this Master Direction enhances regulatory coherence, operational efficiency, and vigilance in handling counterfeit notes, reinforcing the RBI’s commitment to maintaining the integrity of the currency system.
Click Here To Read The Full Circular
The post RBI Issues Master Direction on Counterfeit Notes Compliance appeared first on Taxmann Blog.
