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:
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To get recycled, a note must pass all the fitness parameters: genuine notes, authenticity check.
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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.
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Parameters: applicable to machines operated by banks, namely, note processing machines and machines which check only the authenticity of notes.
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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.
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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 |
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Mutilated, imperfect, mismatched notes and build up notes will be classified as suspect/ reject.
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Duty of the Bank to ensure that the Machines are tested for accuracy and consistency on a quarterly basis and recalibrated if required.
