RBI Rules on Counterfeit Notes serve as the definitive framework for handling fake currency in the Indian banking system. In this guide, we cover the 29 most expected questions derived from the official Master Directions. This expert mock test is specifically designed for RBI GRADE B, SBI PO, IBPS PO, and BANK PROMOTION EXAMS to help you master operational compliance and scoring concepts.
Why These RBI Rules on Counterfeit Notes Matter?
📚 Interactive Question Bank
Select a question to view the expert explanation and answer.
✅ General Practice
Q1Under which legislative act does the Reserve Bank of India (RBI) issue Master Directions on Counterfeit Notes, citing powers under Section 35A and Section 56?Q2Which two entities are specified as having the authority to impound Counterfeit Notes?Q3What method is mandated for examining banknotes tendered over the counter or received as bulk tenders at the back office for authenticity?Q4Which of the following statements correctly describe the procedure for handling a note determined to be counterfeit?Q5If Counterfeit Notes are detected in a tender received over the counter, no credit for the value of those notes is to be given to the customer's ……Q6Which of the following statements regarding the acknowledgement receipt for a counterfeit note are correct?Q7Which of the following statements about counterfeit note reporting are correct?Q8To help identify people abetting the circulation of Counterfeit Notes, what are banks advised to do?Q9The definition of 'counterfeiting' in which legislation also covers currency notes issued by a foreign government authority?Q10If suspected foreign currency notes are received for opinion from police or government agencies, what is the prescribed course of action?Q11Activity of production, smuggling or circulation of what specific item has been brought under the ambit of the Unlawful Activities (Prevention) Act (UAPA), 1967?Q12Who must each bank designate, on a district-wise basis, to serve as the contact point for all Counterfeit Note detection related activities?Q13Which of the following statements regarding the machine processing of banknotes are correct?Q14Dispensation of Counterfeit Notes through …… would be construed as an attempt to circulate the Counterfeit Notes by the bank concerned.Q15Detection of Counterfeit Notes in what type of remittances is liable to be construed as wilful involvement of the chest branches concerned in circulating Counterfeit Notes?Q16What equipment are all bank branches or identified back offices required to be equipped with to facilitate the detection of Counterfeit Notes?Q17What specific type of equipment must all currency chest branches be equipped with?Q18Note Sorting / Authentication Machines used by banks must conform to the guidelines prescribed by the RBI and also the Indian Standards duly certified by the ……Q19Where is each bank required to establish a Forged Note Vigilance (FNV) Cell?Q20Which of the following statements regarding the functions of a bank's Forged Note Vigilance (FNV) Cell are correct?Q21Which of the following statements about the reporting and administrative duties of a bank's Forged Note Vigilance (FNV) Cell are correct?Q22Under the Prevention of Money Laundering (Maintenance of Records) Amendment Rules, 2013, to whom must Principal Officers of banks report information on cash transactions where Counterfeit Notes have been detected?Q23Which of the following statements regarding penalties for counterfeit notes detected in soiled note remittances are correct?Q24How is 'CPM' (counterfeit notes per million) calculated for a soiled note remittance?Q25What are the correct penalties for counterfeit notes detected in a currency chest (CC) balance during an RBI inspection?Q26Which of the following statements regarding the monetary penalty for counterfeit notes are correct?Q27Which of the following statements regarding the preservation and disposal of Counterfeit Notes received back from police or courts are correct?Q28Which of the following statements regarding bank staff training for Counterfeit Notes are correct?Q29Information on the design and security features of all banknotes is provided to banks, which they may display prominently at branches for public information.
Page 1 of 1 (29 Total Questions)
Frequently Asked Questions
Why are RBI Rules on Counterfeit Notes critical for Bank Promotion Exams?
These rules govern daily cash operations. Knowledge of impounding procedures and penalties is essential for operational compliance questions in promotion exams.
What is the penalty for not impounding a fake note?
According to RBI Rules on Counterfeit Notes, wilful non-impounding attracts a penalty of ₹10,000 per instance.
Are White Label ATMs covered under these rules?
Yes, the penalties for dispensing counterfeit notes apply equally to White Label ATM Operators.
📺 Video Masterclass
⏱️ Jump to Topic: