On October 30, 2024, the Reserve Bank of India (RBI) issued a directive regarding the deployment of Note Sorting Machines (NSMs) by banks in India. This follows the previous circular from July 1, 2022, which set guidelines on authentication and sorting parameters for these machines. In collaboration with the Bureau of Indian Standards (BIS) and other stakeholders, the RBI has established new standards for NSMs, documented in IS 18663: 2024, which was published in the Gazette of India on March 19, 2024. These standards aim to enhance the banknote sorting infrastructure nationwide. The RBI has mandated that, starting May 1, 2025, banks must only utilize NSM models that comply with these new Indian Standards and have been certified by BIS. This initiative is part of the RBI’s broader efforts to ensure the integrity and efficiency of banknote processing in the country.
Reserve Bank of India
RBI/2024-2025/86
DCM (NPD) No.S2193/09.45.000/2024-25 Dated: October 30, 2024
The Chairman / Managing Director / Chief Executive Officer
All Banks
Madam / Dear Sir,
Note Sorting Machines: Standards issued by the Bureau of Indian Standards
Reference is invited to our circular DCM (NPD) No.S488/18.00.14/2022-23 dated July 01, 2022 on “Note Sorting Machines – Authentication and Fitness Sorting Parameters”.
2. With a view to further strengthen the banknote sorting architecture across the country, the Bureau of Indian Standards (BIS) after due consultation with Reserve Bank of India and other stakeholders, had published the standards for Note Sorting Machines (NSM) – ‘IS 18663: 2024’ in the ‘Gazette of India’ on March 19, 2024. The standards are available at https://www.services.bis.gov.in/tmp/LITD42522283_07032024_1.pdf.
3. As a step further in this regard, it has been decided that effective May 01, 2025, banks should deploy only such NSM models that conform to the aforesaid Indian Standards and are duly certified by BIS.
Yours faithfully
(Sanjeev Prakash)
Chief General Manager-in-Charge
