8 accounts APTC-VOL-I

Ins. 16, Chp. III] Currency and Bank Notes 339
Note :—When a forged note is impounded, it should be stamped with the word
“forged” or the word “forged” should be written on it in red ink in large letters before it is
sent to police for enquiry.
(b) Notes disfigured by oil or other substances should be scrutinized with special
care, as forged notes are sometimes intentionally thus disfigured to render detection
difficult.
(c) The Managers of certain Joint Stock Banks and Exchange Banks have
instructions to send forged notes presented to them to the nearest Treasury for
impounding. When a Treasury Officer receives a forged note from a Bank he should take
action in accordance with Clause (a) above.
(d) The Bank has issued instructions to all the Scheduled Banks that when a
forged note is presented to a Scheduled Bank, if the presenter is known to it should issue
a receipt for the note and take from the presenter a statement as to how the note came into
his possession. The statement along with the forged note should be forwarded to the
nearest Treasury/Sub-treasury/Currency Officer for his information and action as in Subparagraph
(1) above. If the presenter is not known and if suspected of being cognizant of
the forgery, he should be handed over to the local police for investigation and a suitable
report sent to the Circle Currency Officer. In either case the word “forged” should be
written in red ink in large letters on the note before it leaves the custody of the Bank.
(Memo. No. 4063 lfAccts/6l-l, Dt. 24-7-1961)
(e) At places where there is neither an Issue Department of the Reserve Bank nor
a Branch, Sub-branch or Treasury Pay Office or an Agency, Bank of India, Treasury and
Sub-treasury Officers are authorized to accept, for disposal in the usual manner,
suspected currency or Bank notes tendered by Post and Telegraph Offices.
(Memo. No. 49693/Exp.C/55-l. Fin., Dt. 4-10-1955)
Instrn. 15. No person is of right entitled to recover the value of any lost, stolen,
mutilated or imperfect Currency or Bank notes, but rules have been framed under the
Reserve Bank of India Act prescribing the circumstances, conditions and limitations
under which the value of such notes may be refunded as of grace. The rules are contained
in Appendix 26.
Instrn. 16. Half, mutilated, mismatched or altered notes and notes disfigured by
oil or other substances in such manner as to render their identification doubtful, should
never be received in payment of Government dues or cashed. The holder should be
advised to apply to the Currency Officer competent to deal with the matter in accordance
with the rules in Appendix 25 for instructions regarding the procedure under which the
value of such notes can in some cases be recovered.
Note 1 :—Notes with only a slight mutilation which does not interfere with
identification or suggest fraud, may be received at the Treasury and dealt with under
Subsidiary Rule 16 under Treasury Rule 30. The features necessary for the identification
of a note are, besides the number, which must, including the serial letters, be all intact,
the denomination, the place of issue where indicated, the signature and the watermark.
Note 2 :—Defective notes should be stamped with “Half note payment refused”,
“Mutilated- Payment refused”, “Mismatched-Payment refused” or “Altered-payment
refused” as the case may be, or such words should be written in red ink in large letters
before they are returned to the presenter.