Economy
RBI Consolidates and Updates Bank Rules for Note Sorting Machines
The RBI issued a master direction combining current requirements for banks’ note authentication and fitness-sorting machines.
What happened
The Reserve Bank of India issued a Master Direction on Note Sorting Machines on October 2, 2026. It brings existing instructions into one document, covering authentication, fitness sorting, machine calibration, periodic testing and BIS standards. Earlier circulars on the subject are withdrawn from the date of issuance. Notes may be recycled only after machines confirm they are genuine and fit.
Why it matters
Banks now have a single reference for operating note-sorting machines and must ensure notes meet authenticity and fitness standards before reissue or recycling.
Source: RBI Notifications