RBI office or a bank should be rejected. No bank should issue such notes.
• Notes with slogans and political messages cease to be legal tender.
• Disfigured notes are not legal tender.
• Deliberately cut/ mutilated notes should be rejected.
• If the bank takes a badly mutilated note, it should be communicated to the client that if
the Reserve Bank does not accept the note, his account will be debited
• Banks should not force customers to note their names on bank notes or list note numbers
on the bills submitted for payment or insist on an undertaking when depositing higher
• If a forged note is presented, the presenter’s (tenderer’s) name and address should be
noted. He should be given an acknowledgement.
• The note should be stamped “ COUNTERFEIT BANK NOTE” and impounded. The
stamp must also state the name of the bank, the branch and date. The stamp should be
5cms by 5 cms (uniform size).
• The note should be sent to the local police for investigation by filing a first information
report (FIR). A copy of the FIR must be sent to the RBI.
• If only one or two notes are detected and the tenderer appears innocent, a police
complaint need not be lodged. The notes must be impounded and sent to the RBI.
• All branches should be equipped with ultraviolet lamps.
• The RBI has issued instructions that banks must accept coins as it is legal tender. This
notice was issued as there were several banks that refused to handle a large amount of
coins deposited because of the time it would take to count it.
• As a matter of control the bank must be under dual control. This means that the second
key and the combination should be with another person. This ensures that if the vault is to
be opened there has to be two persons present and embezzlement will therefore not
happen unless there is collusion.
• The controls on cash must be very strong. Cash is fungible – changes form and once lost
is difficult to trace.
Retail loans are those that are give