RBI issued Guidelines on Note Authentication and Fitness Sorting Parameters

Reserve Bank of India

   

On 01-07-2022, Reserve Bank of India (‘RBI') issued guidelines on authentication of note and fitness sorting parameters for the Note Sorting Machines (‘Machine') installed in banks.

Key Points:

  1. To get recycled, a note must pass all the fitness parameters: genuine notes, authenticity check.

  2. When RBI decides to phase out a specific series of specific denomination of notes, such notes will be sorted out by the machine as unfit, irrespective of their physical condition.

  3. Parameters: applicable to machines operated by banks, namely, note processing machines and machines which check only the authenticity of notes.

  4. Authenticity check: to be done with reference to features of genuine notes as disclosed by RBI on its website and the notes not fulfilling the criteria will be classified as suspect/ reject by the machine.

  5. Fitness sorting criteria:

S. No.

Feature

Criteria

1.

Soiling

General distribution of dirt across the entire note

2.

Limpness

Structural deterioration resulting in a marked lack of stiffness

3.

Dog ears

Corner folds

4.

Tears

Lengthwise and crosswise cuts

5.

Holes

Holes of a specific diameter

6.

Stains

Localized concentration of dirt

7.

Graffiti

Deliberate graphic alteration of the note

8.

Crumples

Multiple random folds

9.

Decolouration

Lack of ink on part or whole of the note

10.

Folds

Folds reducing the length or width of the note

11.

Repair

Note repaired using adhesive tape/ paper/ glue

  1. Mutilated, imperfect, mismatched notes and build up notes will be classified as suspect/ reject.

  2. Duty of the Bank to ensure that the Machines are tested for accuracy and consistency on a quarterly basis and recalibrated if required.

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