RBI's new Master Direction requires all currency processing units to use BIS-certified note sorting machines effective immediately, enhancing authenticity and fitness checks in circulation.
RBI Enforces BIS Certification for Note Sorting Machines
The Reserve Bank of India has issued a Master Direction requiring all banks and currency chests to use only Bureau of Indian Standards (BIS)-certified note sorting machines. The directive aims to improve the accuracy of counterfeit detection and fitness assessment in currency processing operations.
The rules mandate periodic calibration, authentication checks, and integration with RBI’s monitoring systems. Machines must comply with IS 15885 (Part 10):2025 or equivalent standards. The RBI has withdrawn previous circulars on currency handling equipment, consolidating all requirements under this unified framework.
This move is part of broader currency management reforms, including the withdrawal of 268 obsolete circulars. Legal teams in financial institutions should verify vendor compliance and update internal audit protocols. Non-compliant machines will not be permitted in currency operations, potentially impacting ATM supply chains and cash logistics.