RBI mandates the use of BIS-certified note sorting machines for authentication and fitness sorting in banks, replacing 268 outdated circulars with a unified master direction.
RBI Mandates BIS-Certified Note Sorting Machines Under New Framework
The Reserve Bank of India has issued a Master Direction requiring all banks and currency processing units to use Bureau of Indian Standards (BIS)-certified note sorting machines for authentication and fitness sorting of banknotes. The move standardises quality control, enhances counterfeit detection, and ensures uniform currency fitness assessment across the supply chain.
The new framework mandates periodic calibration, audit trails for machine performance, and integration with central monitoring systems. All non-compliant machines must be phased out in accordance with the transition timeline specified. Simultaneously, the RBI has withdrawn 268 obsolete circulars and guidelines on currency management, consolidating them into this master direction to improve clarity and enforceability.
Implications for Practitioners
Banking and compliance officers must ensure procurement of BIS-IS 15628 certified machines and maintain compliance documentation. Legal advisors should assist institutions in revising internal audit protocols and managing vendor contracts. The streamlining of circulars reduces regulatory ambiguity, but entities must remain alert to future updates under the centralised framework.
Citations
- RBI Master Direction on Currency and Coin, 2026