RBI Issues Master Direction on Counterfeit Notes Compliance

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  • Last Updated on 4 April, 2026

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RBI Counterfeit Notes Master Direction

Circular No. DCM (FNVD)/G-1/16.01.05/2026-27, Dated 01.04.2026

The Reserve Bank of India (RBI) has issued a Master Direction on Counterfeit Notes – Detection, Reporting and Monitoring, consolidating and updating existing guidelines applicable to banks under the Banking Regulation Act, 1949.

1. Objective of the Master Direction

The primary objective of the framework is to:

  • Ensure uniform practices across banks
  • Strengthen detection and reporting mechanisms for counterfeit notes
  • Provide a single, comprehensive reference point for regulatory compliance

2. Scope and Coverage

The Master Direction covers:

  • Detection of counterfeit currency at bank branches and currency chests
  • Reporting requirements to relevant authorities
  • Monitoring and control mechanisms to prevent circulation of fake notes

This ensures a consistent and structured approach across the banking system.

3. Consolidation of Existing Guidelines

The Direction consolidates multiple existing circulars and instructions into a unified framework, simplifying compliance for banks and improving regulatory clarity.

4. Withdrawal of Earlier Circulars

All earlier circulars and directions on the subject, as listed in Annex IX, stand withdrawn from the date of issuance of this Master Direction.

5. Conclusion

The issuance of this Master Direction enhances regulatory coherence, operational efficiency, and vigilance in handling counterfeit notes, reinforcing the RBI’s commitment to maintaining the integrity of the currency system.

Click Here To Read The Full Circular

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied