RBI Tightens Rules to Curb Fake Currency

The Reserve Bank of India has asked banks across the country to tighten safeguards against counterfeit currency, with a special focus on branches located near international borders. Banks must use note authentication and sorting machines to verify all currency deposited by customers before accepting it. If a counterfeit note is detected, banks have been instructed to follow the prescribed procedure instead of allowing it to re-enter circulation.

The central bank has also directed banks to complete specialised training for all cash-handling staff by October this year to improve their ability to identify genuine and fake notes. RBI emphasised that banks should adopt a comprehensive policy covering counterfeit note detection, reporting and monitoring after reports suggested that some institutions were not following the required standards diligently.