What should be done if counterfeit or fake currency notes received at the counter?

What should be done if counterfeit or fake currency notes received at the counter?

The following procedure should be observed when forged currency notes and counterfeit coins are pre-sented over the counter where cash transactions take place with the public :—

1. *(1) Forged currency notes :—*When a currency note which is suspected to be a forgery is presented at acounter, the tenderer should be informed accordingly and handed an acknowledgement in the following form.

Mr................................................................................. of ...............

..................................... (address) is informed that it is suspected that the currency note No. ............................................ for Rs. .................... .......................... presented by him is

not genuine, and it is, therefore, being sent to the Currency Officer/Treasury Officer ................................. for examination.

Any enquiries regarding the note should be addressed to that Officer.

(b) The suspecting office will then forward the note together with a duplicate of the acknowledgement to the nearest Currency or Treasury Office for disposal in the usual manner.

(2) Counterfeit coins :—The Director at Mumbai GPO, Kolkata GPO and Chief Postmaster, Chennai GPO,Postmasters/Chief Postmasters of the Head Offices at Delhi, New Delhi, Bangalore, Shillong, Cuttack, Jaipur, Hyderabad,Ambala, Nagpur, Patna and Lucknow should cut and return counterfeit coins to the tenderers. At all other post officesthe procedure laid down for forged notes should be followed in the case of counterfeit coins, the form of acknowledgementbeing suitably amended. Post offices other than the three Presidency post offices should refuse to accept diminished and defaced coin.

(3) If a note or coin is presented regarding the genuineness of which the receiving clerk has well-foundedsuspicions, he should bring the matter at once to the notice of the postmaster who should take charge of the noteor coin and if he is also satisfied that the note or coin is counterfeit, he should endeavour to ascertain the name and address of the presenter and should not return the note or coin even if pressed to do so, until the case has been investigated. If, in the meantime, the presenter should leave the post office premises, the case should be handed over to the police for enquiry.

(4) At places where there are branches of the State Bank of India, suspected notes and coins should be sent to such branches of the Bank. Where there is no branch of the State Bank, such notes and coins should be sent to treasuries as usual. Ordinarily, the Post Office employees should be capable of identifying counterfeit coins and references to the local Treasury or the State Bank should be rare. If coins which cannot be clearly identified by the post office as counterfeit are to be sent to the Treasury or the State Bank, as the case may be, it should be once a week or at such intervals as may be agreed upon between the Treasury Officer or the Agent of the Bank and the postmasters concerned. For the proper identity and safe custody of counterfeit coins when such coins have to be retained in the post office, the postmaster himself should take them over and after enclosing them in a closed coverand getting them sealed with his own seal, should keep them in his own custody until they are sent to the treasury or the State Bank, as the case may be.

(5) If currency notes which cannot be clearly identified by the post office as forged are to be sent to the treasury or State Bank, as the case may be, the post office should lose no time in sending them to the Treasury or the State Bank as soon as they come to notice.

II. The Reserve Bank will indemnify all offices against the consequences in the event of a presenter taking any action against the office for carrying out the foregoing procedure.

III. (a) The Reserve Bank has authorised the State Bank of India at all its offices to impound forged currency and bank notes 

(b) At places where there is neither a currency office nor a branch of the State Bank, Treasury Officers are authorised to accept, for disposal in the usual manner, suspected currency or bank notes tendered by the post offices.

(c) At places where there is neither a currency office nor a branch of the State Bank, Treasury Officers are authorised to accept, for disposal in the usual manner, suspected coins tendered by the post offices.

Rule no. 404/2 of Post office Manual Volume-II

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