Counterfeit notes – Banks to Lodge FIR if they detects 5 or more notes in a single transaction

For cases of detection of counterfeit notes upto 4 pieces, in a single transaction, a consolidated report as per the format prescribed in the annex should be sent to the police authorities at the end of the month. For cases of detection of counterfeit notes of 5 or more pieces, in a single transaction, FIRs should be lodged with the Nodal Police Station / Police Authorities as per jurisdiction.

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Detection of Counterfeit Banknotes – Revised Procedure

RBI/2011-12/129
DCM(FNVD) No. 502/16.01.05/2011-12, Dated- July 25, 2011

Dear Sir/Madam,

Detection of Counterfeit Banknotes – Revised Procedure

Please refer to the Master Circular DCM (FNVD) No. G-5/16.01.05/2011-12 dated July 1, 2011 on the above subject. In terms of Para 4 of the circular, among other things, FIRs are required to be filed in respect of all cases of counterfeit banknotes.

2. The matter has been reviewed in consultation with the Government of India, and in order to ensure that all cases of detection of counterfeit notes at the bank branches / treasuries are promptly reported to the police authorities, it has been decided to revise the procedure to be followed on detection of counterfeit banknotes at bank branches, treasuries and sub treasuries. Accordingly, the following procedure should be adopted with immediate effect:

1. For cases of detection of counterfeit notes upto 4 pieces, in a single transaction, a consolidated report as per the format prescribed in the annex should be sent to the police authorities at the end of the month.
2. For cases of detection of counterfeit notes of 5 or more pieces, in a single transaction, FIRs should be lodged with the Nodal Police Station / Police Authorities as per jurisdiction, in terms of our Master Circular ibid.

3. Other instructions in the above Master Circular will remain unchanged.

4. Problems, if any, in implementation, may be resolved in consultation with the Regional Director, Reserve Bank of India, of the State concerned.

5. Progress in the area of reporting should be discussed in the meetings of State Level Bankers’ Committee, Standing Committee on Currency Management and State Level Security Committee held in various States.

6. Banks may please bring the contents of the circular to the notice of their branches and ensure that the above instructions are being followed both in letter and spirit.

7. Please acknowledge receipt.

Yours faithfully,

(Dr. N Krishna Mohan)
Chief General Manager

Encl: One

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Annex
Detection of Counterfeit Notes- Upto 04 pieces in a single transaction-Consolidated monthly reporting

Name of the Bank/ branch:

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