RBI Issues Master Direction on Note Sorting Machines
2 October 2026 · RBI
The Reserve Bank of India has issued a consolidated Master Direction on Note Sorting Machines for all banks under the Banking Regulation Act, 1949. It establishes that authenticity checks are a mandatory prerequisite for fitness sorting, and notes must pass all individual fitness parameters to be reissued. Furthermore, machines must automatically classify phased-out banknote series as unfit for circulation.
The Reserve Bank of India has issued a consolidated Master Direction on Note Sorting Machines for all banks under the Banking Regulation Act, 1949. It establishes that authenticity checks are a mandatory prerequisite for fitness sorting, and notes must pass all individual fitness parameters to be reissued. Furthermore, machines must automatically classify phased-out banknote series as unfit for circulation.