The Reserve Bank of India has issued a Master Direction consolidating and updating its requirements for note sorting machines used by banks and their agents. It withdraws five earlier circulars and brings the operative instructions into one framework, following the RBI’s broader consolidation of currency management rules. Banks may recycle or reissue notes only after machines determine that they are genuine and meet all prescribed fitness parameters. Machines must segregate suspected counterfeits, phased out series and notes that fail standards covering defects such as soiling, tears, stains, graffiti, folds, decolouration and repairs. Banks must test machines for accuracy and consistency each quarter, recalibrate them where required and retain signed testing certificates. Banks must procure only note sorting machines certified under the Bureau of Indian Standards framework. Models already deployed but discontinued from production must be phased out by June 30, 2027, with penalties applicable for noncompliance.
Reserve Bank of India consolidates note sorting machine rules, retains BIS procurement mandate and June 2027 phaseout
The Reserve Bank of India has consolidated and updated its note sorting machine requirements, withdrawing five earlier circulars. Banks must conduct quarterly machine testing and use prescribed authentication and fitness criteria before recycling notes. Future procurement is limited to BIS-certified machines, while discontinued models must be phased out by June 30, 2027.