The Reserve Bank of India has directed all banks to review and strengthen their processes for identifying, impounding and reporting Fake Indian Currency Notes after finding that some banks’ efforts were inadequate. Banks must establish monitoring mechanisms to ensure compliance with existing requirements, including machine authentication of received banknotes, staff training and the impounding and reporting of detected counterfeits. All cash-handling staff must receive targeted training or refresher instruction by Oct. 31, 2026, with staff at branches in border areas trained on a priority basis by Sept. 15. Banks must equip branches in districts with international borders with note authentication or sorting machines. Their Forged Note Vigilance Cells must also analyze counterfeit-note data to identify hotspots, monitor trends and target outreach and capacity-building. Banks must report completion of border-area training by Sept. 22 and training for all cash-handling staff by Nov. 7. They must submit their compliance action plans and progress to the Reserve Bank by Sept. 15.
Reserve Bank of India2026-07-31
Reserve Bank of India requires banks to strengthen counterfeit-note controls after finding inadequate efforts
The Reserve Bank of India has required banks to strengthen counterfeit-note controls after finding inadequate efforts at some institutions. Banks must train cash-handling staff, equip branches in international-border districts with authentication or sorting machines and use counterfeit-note data to identify hotspots. Key compliance deadlines run from Sept. 15 to Nov. 7, 2026.