RBI Extends Deadline for Banks to Implement Note Sorting Machine Standards
RBI extends deadline for implementing Note Sorting Machine standards by Six Months to November 1, 2025, following Banks' requests
RBI – RBI Extends Deadline – RBI Extends Deadline for Banks – Banks to Implement Note – taxscanRBI – RBI Extends Deadline – RBI Extends Deadline for Banks – Banks to Implement Note – taxscan
RBI – RBI Extends Deadline – RBI Extends Deadline for Banks – Banks to Implement Note – taxscanRBI – RBI Extends Deadline – RBI Extends Deadline for Banks – Banks to Implement Note – taxscan
The Reserve Bank of India (RBI) issued a notification on April 24, 2025, extending the deadline for banks to implement the standards for Note Sorting Machines. These standards set by the Bureau of Indian Standards (BIS) ensure that the machines used by banks can properly sort currency notes and identify fake or damaged notes.
In its notification, the RBI mentioned that several banks had requested more time due to difficulties in meeting the earlier deadline. Considering these requests, the RBI has now extended the timeline by six months, giving banks time until November 1, 2025, to fully comply with the required standards.
“In view of representations received from various banks citing implementation challenges, it has been decided to extend the timeline for implementation of the instructions by six months i.e., up to November 01, 2025. The banks shall however, endeavour to comply with the instructions at the earliest.”
The RBI also advised banks to make efforts to implement the changes as early as possible, instead of waiting until the new deadline. Apart from the extension of time, all other instructions given in the previous circular dated October 30, 2024, will remain unchanged.
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Earlier, through its circular RBI/2024-2025/86, DCM (NPD) No.S2193/09.45.000/2024-25 dated October 30, 2024, the RBI had informed all banks about the requirement to use note sorting machines that comply with the BIS standards published as ‘IS 18663:2024’ in the Gazette of India on March 19, 2024.
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These standards were created after consultations between the RBI, BIS, and other stakeholders, aiming to strengthen the banknote sorting and authentication system across the country. The standards outline clear guidelines for how machines should sort, detect, and handle currency notes, including counterfeit detection and fitness sorting parameters. The published standards can be accessed at the BIS Website Link.
The October 2024 circular had originally set May 1, 2025, as the effective date from which banks were required to deploy only those NSMs that conform to these BIS standards and are duly certified by BIS.
The BIS standards for Note Sorting Machines are aimed at:
- Ensuring effective sorting of currency notes,
- Improving the accuracy in detecting counterfeit and soiled notes, and
- Maintaining the quality and integrity of currency circulation in the banking system.
To Read the full text of the Order CLICK HERE
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