

RBI issued Master Direction on Counterfeit Notes, 2025 – Detection, Reporting and Monitoring
The following is been stated
Authority to Impound Counterfeit Notes
The Counterfeit Notes can be impounded by:
Detection of Counterfeit Notes
Banknotes tendered over the counter shall be examined for authenticity through machines. Similarly, banknotes received directly at the back office / currency chest through bulk tenders shall also be examined through machines.
No credit to customer’s account is to be given for Counterfeit Notes, if any, detected in the tender received over the counter or at the back-office / currency chest.
In no case, the Counterfeit Notes shall be returned to the tenderer or destroyed by the bank branches. Failure of the banks to impound Counterfeit Notes detected at their end will be construed as wilful involvement of the bank concerned in circulating Counterfeit Notes and penalty will be imposed.
Impounding of Counterfeit Notes
Notes determined as counterfeit shall be stamped as “COUNTERFEIT NOTE” and impounded in the prescribed format (Annex I). Each such impounded note shall be recorded under authentication, in a separate register.
Link – https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12814&Mode=0