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According to RBI guidelines, if five or more counterfeit notes are detected in a single transaction, what action must the Nodal Bank Officer take?​
Question

According to RBI guidelines, if five or more counterfeit notes are detected in a single transaction, what action must the Nodal Bank Officer take?​

A.

Record the incident internally and include it in the next monthly report

B.

Destroy the counterfeit notes after documentation

C.

Immediately forward the notes to the local police and file an FIR in the prescribed format

D.

Send the notes directly to the Reserve Bank of India for verification

E.

Hand over the notes to the customer after marking them as counterfeit

Correct option is C

As per RBI’s “Detection of Counterfeit Notes – Reporting to Police and Other Bodies” procedure:

  • When five or more counterfeit notes are found in a single transaction, the Nodal Bank Officer must immediately send the notes to the local police or Nodal Police Station and file an FIR using the prescribed Annex–IV format.

  • If up to four counterfeit notes are detected, the case is reported monthly in a consolidated report to the police.

Banks must also:

  • Send copies of reports or FIRs to the Forged Note Vigilance (FNV) Cell.

  • Obtain acknowledgment from police authorities.

  • Maintain CCTV surveillance for monitoring and evidence.

  • Report data to RBI in monthly returns.

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