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

Q20: Which of the following statements regarding the functions of a bank's Forged Note Vigilance (FNV) Cell are correct?

It is responsible for disseminating RBI instructions on Counterfeit Notes to all branches.




It is responsible for ensuring the operation of Note Sorting Machines at all currency chests and back offices.




It is responsible for directly prosecuting individuals who tender Counterfeit Notes.




It conducts periodic surprise checks at currency chests where shortages or Counterfeit Notes are detected.
A
1, 2, and 4 only
B
1 and 3 only
C
2 and 3 only
D
All of the above
✅ Correct Answer: A
The FNV Cell disseminates info and conducts surprise checks but does not prosecute directly.
The RBI Rules on Counterfeit Notes define these monitoring functions clearly.