The Reserve Bank of India (RBI) has directed commercial banks to equip branches located in districts along international borders with note authentication and sorting machines.
The central bank issued the instruction on Friday, citing findings that some lenders had failed to adequately verify the authenticity of banknotes received at these sensitive locations.
The RBI emphasized that any counterfeit notes identified must be impounded immediately.
Under the new directive, all banknotes received by these branches must be examined for authenticity using the designated machinery.
The RBI emphasized that any counterfeit notes identified must be impounded immediately.
Crucially, the central bank stipulated that counterfeit currency must never be returned to the tenderer, reinforcing strict compliance protocols for frontline banking staff.
This move reflects a broader tightening of financial security measures by India's central bank.