The Reserve Bank of India (RBI) has asked banks to test their note sorting machines every quarter for accuracy and consistency to ensure that currency notes conform to prescribed parameters. RBI has prescribed 11 norms for the condition of notes and hence directed banks to use note fit sorting machines instead of note sorting machines.
In the circular on ‘Note Sorting Machines – Authentication and Fitness Sorting Parameters’, the RBI said that a fitted note is “a note which is genuine, sufficiently clean so that its value can be easily ascertained and thus suitable for recycling”. be suitable for”.
An unfit note is one that is not suitable for recycling due to its physical condition or belongs to a series that has been phased out by the Reserve Bank of India.
RBI directed the banks that the Note Processing Machines/Note Sorting Machines shall check the authenticity from time to time. Any note which does not possess all the characteristics of the original note will be classified as doubtful/rejected by the machine.
Further, as per the circular, banks will have to send the fitness report of currency notes to the RBI every three months. Banks will have to inform RBI about the number of notes found unfit and the notes that can be re-issued after proper maintenance.
As per the RBI circular, notes having any visible or physical defect are to be ranked as unsuitable according to the following criteria:
1. Soil: It refers to the normal distribution of dirt throughout the note or in certain patterns. It is a measure of the loss of reflectivity from unprinted areas due to dirt, aging (yellowing), wear and external markings and includes bleaching due to aging, excessive folding and other wear.
2. Lameness: It is related to structural degradation resulting in loss of rigidity in note paper. Notes with very low paper hardness will be ranked as unsuitable.
3. Dog Ears: Dog-eared banknotes with an area of more than 100 mm² and a minimum edge length of more than 5 mm shall be ranked as unsuitable.
4. Tears: Notes displaying at least one tear on the edge will also be considered inappropriate.
5. Holes: Notes with holes with an area greater than 8 mm² will be ranked as unsuitable.
6. Stain: Localized concentrations of dirt will also make the note unfit for use.
7. Graffiti: Graffiti refers to the intentional graphic alteration of notes, for example, figures or letters. In the case of graffiti the fitness sorting criteria will be the same as for the stain.
8. Crumples/Folds: If the folds result in a reduction in the length or width of the original note, the truncated/bent notes will be ranked as inappropriate.
9. Changing Colors: If the ink is partially or completely missing from its surface, notes affected by bleaching will be ranked as unsuitable.
10. Repair: Note that repairs done using adhesive tape/paper/glue would fall under the unfit category.
While setting the parameters, the central bank said, “A note has to pass all the fitness parameters to be considered suitable for recycling.”
“Notes can be recycled/re-issued only if they are assessed as genuine and fit in accordance with these standards. An authenticity check is a prerequisite for fitness sorting,” RBI said.