The Reserve Bank of India (RBI) has extended the timeline for the implementation of its instructions requiring banks to deploy only those note sorting machine (NSM) models that conform to the standards issued by the Bureau of Indian Standards (BIS) by six months, to November 1, 2025.
These standards specify the performance and safety requirements of NSMs to ascertain the authenticity and fitness of banknotes processed.
These requirements include the criteria specified in the guidelines issued by the RBI from time to time — such as soiling, limpness, dog-ears, tears, holes, stains, folds, etc. — which these machines must be able to detect adequately while processing the banknotes.
With a view to further strengthening the banknote sorting architecture across the country, the BIS, after due consultation with the RBI and other stakeholders, published the standards for NSMs on March 19, 2024.
In October 2024, the RBI stated that, effective May 1, 2025, banks must deploy only those NSM models that conform to the aforesaid Indian Standards and are duly certified by the BIS.
Published on April 24, 2025
