RBI modifies the rules for banknote sorting and authentication

The Reserve Bank of India (RBI) published guidelines ordering banks to test their currency sorting equipment every three months. Following the release of the new series of banknotes, the central bank updated the preexisting standards for authentication and sorting. The Reserve Bank stated that vendors will need to re-calibrate the equipment in the event of inconsistencies during the sorting.

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KEY POINTS:

• According to new changes, banks must prepare a test deck containing at least 2,000 pieces of dirty notes, including mutilated and phoney Indian currency notes.
• The machine must be tested using notes in various denominations, including Rs. 100 notes from the old and new series, Rs. 200 notes, Rs. 500 notes, and Rs. 2,000 notes.

About the Modifications made by RBI:

• The new set of instructions are enclosed for implementation after a review of these parameters in light of the release of the new series of banknotes.
• According to statistics in the RBI’s annual report for 2021–22, banknotes are now issued in the following denominations: Rs 2, Rs 5, Rs 10, Rs 20, Rs 50, Rs 100, Rs 200, Rs 500, and Rs 2000.
• In terms of value, the combined proportion of the Rs. 500 and Rs. 2000 banknotes made up 87.1 percent of the banknotes in use.
• When it comes to volume, the biggest percentage of banknotes in circulation as of March 31 belonged to the Rs 500 denomination, which made up 34.9 percent of the total.

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