RBI issued new Master Directions requiring use of BIS-certified note sorting machines, enhancing currency authenticity and fitness standards. All prior circulars on currency management are consolidated or withdrawn.
BIS Certification Now Mandatory for Note Sorting Machines
The Reserve Bank of India (RBI) has issued comprehensive Master Directions on Note Sorting Machines, mandating that all machines used by banks and currency chests must be Bureau of Indian Standards (BIS)-certified. The directive covers authentication, fitness sorting, and calibration standards, aiming to improve quality control in currency circulation.
This move follows the withdrawal of 268 obsolete or redundant circulars on currency management, as part of a broader rationalization exercise. The new Master Directions serve as a consolidated regulatory framework, ensuring uniformity and technical compliance. Financial institutions must now ensure procurement and operation of only BIS-certified machines.
For practitioners, the change necessitates compliance reviews by banks, cash handling agencies, and fintech operators. The updated framework enhances accountability in currency processing and may impact vendor contracts and audit protocols. Institutions should monitor implementation timelines in the Master Directions.
