Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: General Practice

Q65: Which of the following is NOT a correct procedure when an Authorized Person (AP) detects a Counterfeit Note tendered by a customer?

A
The note must be impounded immediately.
B
"COUNTERFEIT BANKNOTE" stamp must be branded on the note.
C
The note should be returned to the customer with a warning not to use it again.
D
An acknowledgement receipt must be issued to the customer.
✅ Correct Answer: C
1. Strict Prohibition: An AP must NEVER return a counterfeit note to the customer.
Doing so allows the fake currency to re-enter circulation, which is a criminal offense.
2. Correct Procedure: Impound: Confiscate the note immediately (Option A). Stamp: Brand it with "COUNTERFEIT BANKNOTE" to render it unusable (Option B). Receipt: Issue a prescribed acknowledgement receipt to the tenderer (Option D). Report: Report to the Police/Nodal Officer depending on the quantity (e.g., if >4 pieces, FIR is mandatory).