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

Q23: Which of the following statements regarding penalties for counterfeit notes detected in soiled note remittances are correct?

For denominations of ₹5, ₹10, and ₹20, the penalty is the recovery of loss to the extent of the notional value.




For the denomination of ₹50, the penalty is 50% of the notional value, in addition to the recovery of the notional value.




For denominations of ₹100 and above, if the CPM is 20 or more, the penalty is 200% of the notional value, in addition to the recovery of the notional value.
A
1 and 2 only
B
1 and 3 only
C
2 and 3 only
D
All of the above
✅ Correct Answer: D
The penalties are graded by denomination and CPM.
The RBI Rules on Counterfeit Notes utilize these financial deterrents to ensure banks filter out fakes before remittance.