The Reserve Bank of India (RBI) on April 01, 2026, issued the Master Direction on Counterfeit Notes – Detection, Reporting and Monitoring.
The following has been stated:
• It introduces tighter prudential norms for regulated entities, with a strong focus on risk containment and better governance practices. It emphasizes stricter compliance requirements for banks and financial institutions, including enhanced due diligence, monitoring, and reporting obligations.
• The framework aims to reduce systemic risks by ensuring that financial exposures are adequately secured and properly assessed. It also reinforces the accountability of regulated entities by requiring stronger internal controls and adherence to regulatory directions.
• Additionally, the provisions align with evolving financial sector developments by incorporating updated guidelines on capital adequacy, exposure limits, and transaction monitoring, thereby ensuring consistency with global best practices.
• It seeks to improve transparency by mandating clearer disclosures and strengthening supervisory oversight by the RBI.
[Notification no. - RBI/DCM/2026-27/394 DCM (FNVD)/G-1/16.01.05/2026-27]
