On Oct. 30, 2024, IND RBI said Bureau of Indian Standards (BIS), in consultation with IND RBI and stakeholders, issued Indian standard IS 18663 : 2024 - note sorting machines — specifications (gazetted Mar. 19 2024), which outline standards for NSMs.
On/from May 1, 2025, banks must deploy only NSM models that meet the standards.
On Jul. 1, IND RBI revised guidelines regarding note authentication.
IND RBI revised guidelines on authentication and fitness sorting parameters of note sorting machines (NSM) to align with introduction of the new series banknotes.
Follows the IND RBI circular dated May 11, 2010 regarding note authentication and fitness sorting parameters for the note sorting machines installed in the banks.
Overview of Guidelines
Defines fit notes and unfit notes; a note must pass all fitness parameters for recycling.
Define applicability of note sorting machines; authenticity check and fitness sorting.
Suspect/reject notes shall be subjected to manual inspection for any wrongdoings.
Banks shall ensure that the machines are tested for accuracy and consistency on a quarterly basis; recalibrated if necessary; as well as follow quarterly testing format.
Effectiveness
The revised guidelines are effective immediately on Jul. 1, 2022.
Oct. 2024 New Standards Issued
On Oct. 30, 2024, IND RBI said Bureau of Indian Standards (BIS), in consultation with IND RBI and stakeholders, issued Indian standard IS 18663 : 2024 - note sorting machines — specifications (gazetted Mar. 19 2024), which outline standards for NSMs.
On/from May 1, 2025, banks must deploy only NSM models that meet the standards.
Regulators
IND RBI
Entity Types
Bank
Reference
Nt RBI/2024-2025/86, DCM (NPD) No. S2193/ 09.45.000/ 2024-25, 10/30/2024; Nt RBI/2022-23/79, DCM(NPD)No.S488/18.00.14/2022-23, PR 7/1/2022
