Question 1

If a bank detects 5 or more counterfeit notes in a single deposit transaction at the counter, what is the mandatory reporting procedure?

Return the notes to the customer with a warning.Impound the notes and include them in the monthly report to RBI only.Destroy the notes in front of the customer.Impound the notes and file an FIR with the Police immediately.

View Explanation

As per RBI guidelines, if 5 or more counterfeit notes are detected in a single transaction, the Nodal Bank Officer must file an FIR (First Information Report) with the local police station immediately. For less than 5 notes, a consolidated report is sent to the police at the end of the month. In all cases, notes must be impounded and stamped "COUNTERFEIT BANKNOTE"; they must never be returned to the depositor.

JAIIB Quiz

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