Understanding INDIAN BANK NOTE

March 7, 2011

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Agenda

Introduction to INR

Role of RBI

Clean Note Policy

Security Features of INDIAN currency

Detection of Fake Note

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Introduction to Indian Currency

Introduction to Indian Currency

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The Indian rupee is official currency of republic of India (Devanagari: रुपया� ) (code: INR)

The Issuance of currency is controlled by the Reserve bank of India

The word rupee is derived from the Sanskrit word Raupya means “silver “ or “made of silver”

Old & New series Notes

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Agenda

Role of RBI

Introduction to INR

Clean Note Policy

Security Features of INDIAN currency

Detection of Fake Note

Role of RBI

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The Reserve Bank is the nation’s sole note issuing authority.

Ensuring an adequate supply of clean and genuine notes.

The Reserve Bank also makes sure there is an adequate supply of coins, produced by the government.

In consultation with the government, they routinely address security issues and target ways to enhance security features to reduce the risk of counterfeiting or forgery

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Mint

Press

Issue Offices

Chandigarh

New Delhi Jaipur

Lucknow

Kanpur Patna

Guwahati

Ahamadabad Calcutta

Hyderabad

Banglore

Trivandrum

Chennai

Mumbai Byculla

Bhuaneshwar Nagpur

Mysore

Nasik

Dewas Salboni

Noida

Mumbai Hyderabad

Calcutta

Bhopal 4 - Press4 - Mint18 - Issue office

Reserve Bank of India

Flow of Notes & Coins

Presses

RBI Offices

Chest branches

Public

NOTES

4 Mints

4 mint-linked RBI Offices

Chest branches & RBI Offices

PublicCOINS

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Agenda

Clean Note Policy

Introduction to INR

Role of RBI

Security Features of INDIAN currency

Detection of Fake Note

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Clean Note Policy

Soiled currency notes and notes with slight mutilations which do not interfere with their identification as genuine notes are freely exchanged at banks and at RBI.

In view of the directions received from Reserve Bank of India, currency sections shall not be stapled and instead secured with paper bands/ twines only.

Customers are requested to check and verify the loose as well as banded currency sections before leaving the counter and no claims whatsoever will be entertained later.

Public are requested not to write anything on the Currency Notes

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Agenda

Security Features of INDIAN currency

Introduction to INR

Role of RBI

Clean Note Policy

Detection of Fake Note

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Security Features of INDIAN currency Watermark

Latent Image

Intaglio Printing

Fluorescence

See through register

Security Thread

Micro lettering

Identification Mark

Optical Variable Ink

Water Mark

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Mahatma Gandhi PortraitMahatma Gandhi Portrait as watermarkas watermark

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Water Mark

A hand engraved, three dimensional watermark with Mahatma Gandhi portrait in notes of all denominations

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WatermarkWatermarkGenuine Note

Three dimensional

Counterfeit

Flat and dimension different

Multi directional Lines

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Crisscross or multi-directional linesCrisscross or multi-directional lines

Multi directional lines

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Latent Image

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A vertical band to the right of the Mahatma Gandhi’s portrait contains a hidden image, showing the denominational value of Rs. 20, 50, 100, 500 or 1000 as the case may be.

The value can be seen only when the note is held flat at eye level .

Latent Image

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Intaglio Printing

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04/10/23

The name “Reserve Bank of India” in Hindi & English, guarantee and promise clauses, Governor's signature and Ashoka Pillar Emblem on the left, are printed in intaglio i.e. in raised prints, in Rs.20, Rs. 50, Rs.100, Rs.500 and Rs. 1000 notes

Rs.10 notes do not have this feature.

Intaglio Printing

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 Fluorescence

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Can be seen when notes are held under Ultra-Violet (UV) Lamp

Number panel

Optical fibres

Design of the note at the middle

Security Thread of Rs. 100 and Rs. 500 notes in blue colour and Rs. 1000 notes in Rainbow colour

Fluorescence

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GENUINE

COUNTERFEIT

 See through Register

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The small floral design printed both on the front (hollow) and back (filled up) of the banknote in the middle of the vertical band next to the watermark window has been modified.

Security Thread

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Rs.10, Rs. 20 and Rs.50 notes contain a readable, but fully embedded security thread.

Rs.100, Rs.500 & Rs. 1000 notes contain a readable windowed security thread. This thread is partially exposed and partially embedded.

The thread in Rs. 100 & 500 contains the words ‘BHARAT and 'RBI' appearing alternately. The thread in Rs. 1000 note also contains the numeral ‘1000’ in addition to ‘Bharat¸' and ‘RBI’. When held against light, this thread is seen as one continuous line

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Security Thread

Security Thread

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Smudged print on a Forged Note to give the appearance of a Security Thread

Readable Windowed Security Thread which is partially exposed & partially embedded with clear text ‘RBI’ in English & ‘Bharat’ in Hindi

Microlettering

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This feature, seen under a magnifying glass, appears between the vertical band and Mahatma Gandhi portrait.

The word ‘RBI’ appears in Rs.10 denominations. Notes of Rs. 20 and above also contain the denominational value of the notes

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04/10/23

Microlettering- A ComparisonMicrolettering- A Comparison

Genuine Note Counterfeit Note

Identification Mark

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A special intaglio feature for visually impaired is printed on the left of the watermark window on all notes of Rs.20/- & above. This feature is in different shapes for various denominations

Rs. 20- Rectangle,

Rs.50-Square,

Rs.100-Triangle

Rs.500-Circle

Rs. 1000- Diamond

Optical Viable Ink

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The numeral ‘ 500’ on the latest series of Rs. 500 note and ‘1000’ on Rs. 1000 denomination note are printed in optically variable ink viz., a colour-shifting ink.

The colour of the numerals ‘500’ & ‘1000’ appears green when the note is held flat but changes to blue when the note is tilted

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OVI-A ComparisonOVI-A Comparison

HELD FLAT

TOP

VIEW

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Agenda

Detection of Fake Note

Introduction to INR

Role of RBI

Clean Note Policy

Security Features of INDIAN currency

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Identifying Counterfeit Identifying Counterfeit notesnotes

The following are the 4 basic procedures to identify a genuine Indian currency note:

FEEL-------the paper TOUCH----the intaglio printing SEE--------the watermark & security thread TILT-------to see the latent image & OVI

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The ‘ FEEL’ EffectThe ‘ FEEL’ Effect

Banknote paper is made of 100 % rag content of cotton .

The paper has good folding strength, tearing resistance and tensile strength.

Because of the above qualities of paper, it imparts crispness and crackling sound to the note.

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The ‘TOUCH’ EffectThe ‘TOUCH’ Effect In Indian Banknotes of Rs. 20 and up to Rs. 100

denominations, the following are printed with intaglio effect on the obverse:

The MG Portrait, the Promise clause, the Guarantee clause, the Governor’s signature, the value of the note in Arabic numerals, RBI, Ashoka Emblem, etc.

In Rs. 500 and Rs. 1000, both sides of the notes are printed with intaglio feature . These include the scenic beauties, historic monuments, the value of the note in Arabic numerals, etc., on the reverse of the note.

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The ‘SEE’ effectThe ‘SEE’ effect Security Thread- In notes from Rs. 5 to Rs. 50, there is

only an embedded security thread which can be seen against light

In Rs. 100 and above, the security thread is a windowed one, partially visible outside and partially embedded.

When seen against light, one continuous line is visible.

Watermark:- Presently, all notes are issued with MG watermark. There are also hidden watermarks that

cannot be seen through naked eyes.

The ‘TILT’ effectThe ‘TILT’ effect

OVI effect: The denominational numeral of Rs. 500 and 1000 in the centre of the notes are printed in OVI ink. The colour shifts from green to blue when tilted

Latent Image: The denominational values (in numerals) of Rs. 500 & 1000 notes are also printed in hidden form at the right hand edge of the note. These numerals can be seen when the notes are kept at eye level against light.

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Additional Security Features

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Omron Anti-Photocopying Feature

A banknote with this feature, when copied by a colour photocopier, gives an output with a different colour shade. The feature appears on either side of the legend Reserve Bank of India on the obverse and in the left margin on the reverse.

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Omron Anti-Photocopying Feature

Genuine Counterfeit

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Electrolyte Watermark

In addition to the Mahatma Gandhi watermark, the denominational numeral 50 appears vertically alongside Mahatma Gandhi portrait in the watermark window.

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Other popularly known features

Crisscross lines & Number Panel

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Criss cross lines on lips & eyes

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Role of Banking System in Prevention of Role of Banking System in Prevention of Fake Currency in CirculationFake Currency in Circulation

Not a single piece of forged note should go undetected through the banking system

To achieve this aim, banks shall acquire the necessary infrastructure in their branches in a time-bound manner and make use of them

Also, the banks should arrange for sustained awareness programme for the staff and also improve the accountability mechanism

It should be ensured that the laid down procedures relating to detected forged notes are strictly followed

Banks should strengthen their Forged Note Vigilance Cells and ensure co-ordination with their CVOs to monitor the forged note related issues more effectively

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Measures taken by RBI against Measures taken by RBI against counterfeitingcounterfeiting

Apart from placing the relevant information on the Bank’s web site, extensive awareness campaign carried out through print and electronic media by Central Office, RBI

Issue Offices have also been authorised to spread the awareness thro’ various modes

Training to bank and Govt. staff by RBI Regular analysis of trends in forgeries and information shared

with intelligence agencies Updation of security features of banknotes Followed-up and ensured the nomination of Govt. Nodal Agency

and Nodal Officials to deal with cases relating to forgeries A proposal to amend the present legal provisions to ensure that

the opinion on a note furnished by agencies such as Govt forensic labs also may be admissible in the Court of Law is under the consideration of the GoI – Matter being pursued.

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Thank You