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Currency Note Verification Guide

The document outlines the characteristics and security features of Nepalese currency notes, including their definition, anatomy, and the impact of counterfeit currency. It also details methods for detecting counterfeit notes and the Clean Note Policy established by the Nepal Rastra Bank to maintain the integrity of currency. The policy aims to reduce the circulation of damaged notes and promote the use of clean currency in financial transactions.

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0% found this document useful (0 votes)
28 views10 pages

Currency Note Verification Guide

The document outlines the characteristics and security features of Nepalese currency notes, including their definition, anatomy, and the impact of counterfeit currency. It also details methods for detecting counterfeit notes and the Clean Note Policy established by the Nepal Rastra Bank to maintain the integrity of currency. The policy aims to reduce the circulation of damaged notes and promote the use of clean currency in financial transactions.

Uploaded by

santosh shah
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Currency Notes and their Verification and Clean Note Policy

Piyush Man Shakya


Senior Scientific Officer
National Forensic Science Laboratory,
Introduction to money
As per Nepal Rastra Bank Act, 2058 Bs, the term money and currency note are described as:
 “Money” means all types of currency notes, postal orders, postal notes, money orders, cheques,
drafts, travellers cheques, letters of credit, bills of exchange, promissory notes and credit cards
and this expression also includes similar types of monetary instruments as the Bank may
prescribe, as per the requirement through the publication and transmission of public notice.
 “Currency Note” means the bank note in circulation in the form of cash and this expression also
includes coins.

Anatomy of Nepalese currency notes


 Number scheme
 Signature of the Governor  Bank seal or logo
 Portraits of Legendary  Government seal
 Denomination of notes  Guarantee and promise clause
 Depiction of various culture, wildlife,
religion

Security features
 Substrate (Paper, Polymer)  Blind recognition
 Water Mark  Printing
 Security threads  Lithographic
 Latent Images  Intaglio
 UV features  Letterpress
 Tactile feature  Ink Feature (Fluorescence)
 Micro script  Iridescent coating
 Foil  Anti scanning, anti-photocopy line
 Embossing structures
 See Through Register (STR)  Shiny features

Counterfeit currency
 Counterfeit money is currency that is produced without the legal sanction of the state or
government to resemble some official form of currency closely enough that it may be confused
for genuine currency.
 Any currency produced without proper security features as sanctioned by the state or government
is counterfeit currency.

Ill effect of counterfeit currency


 Reduction in the value of real money;
 Increase in prices (inflation) due to more money getting circulated in the economy - an
unauthorized artificial increase in the money supply

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 Decrease in the acceptability of paper money; and losses, because companies are not reimbursed
for counterfeit money which is detected and confiscated.

How to handle a counterfeit currency


 Inform the depositor about the situation.
 Detain the counterfeit note no matter what.
 Submit the counterfeit note to NRB with any acquired information

Production of Counterfeit currency


There are three general ways of printing counterfeit currency:
1) Offset press printing
2) Photocopying
3) Scanning and color printing

Some general security features of Nepalese Currency Note


These features are standard features which can be easily analyzed and differentiated from counterfeit
currency by using simple tools like UV light, lens and hand.

Security feature which can be analysed without using any special tools
Paper quality: 100% cotton, Natural whiteness, Length of fibers -crackling sound and more folding
strength.

Water mark: Hold the note up to the light with the front of the note facing you. In the clear area on the
right, you will see an image of the national flower “Laligurans”. This can also be viewed from back of
note.

(a) Nepalese Rupee (b) Indian Rupee

c) Old US $100 d) New US$100


Fig1: Watermarks on currency notes

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Security thread
 There is metallic thread embedded in every banknote.
 This appears as silver dashes.
 If you hold the note up to the light, the metallic thread will appear as a continuous dark line.
 Consists wider thread in higher denomination.


Fig2: Security Thread on currency notes

See through Registry (STR)

Iridescent coating: A golden print of iridescent coating on rear side of notes

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Security feature which can be analysed using sense of touch
 Intaglio printing which creates firm ridges of printed material can be easily felt by hand. This
printing features is not easily present in counterfeit currency.

 Letterpress: It is the type of printing where printed materials are pressed onto paper surface. In all notes
letter pressing is found in
◦ Black Magnetic fluorescent serial numbers
◦ Black Magnetic fluorescent Governor's Signature
◦ Phosphorescent block on the upper part of Mount Everest.

 Embossing: Bank notes are printed on special paper that gives them unique feel. By running
your finger across the front of its surface, you can feel raised print

Security feature which can be analysed by using simple tools like lens and UV light
Microtext
By using magnifying lens, one can study the micro letters which are almost present in all currencies.
Microtext usually found as border or filler agent. Microtext are usually bank name, country name,
denomination etc.

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UV markings can be identified using simple UV lamp
The paper of the currency note does not glow under UV light but the certain features do. For instance
serial number, signature, peak of Mt Everest etc.


 Governer’s Signature Number scheme

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UV features on new Rs 500 with variable color fluorescence

Color shift or OVI in new Rs 500


The color of this feature change is color on tilting the currency note. This feature is also found in most
of the foreign currency notes like USD, IC, British pound etc

Normal view Oblique view

Comparisons between genuine Notes and fake notes in respect of fluorescent effect of Signature, letter
style of notes' number scheme and appearance of watermarks etc.

UV markings:

Glow under UV light in genuine No glow under UV light in Counterfeit

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Microlettering

Unclear micro lettering on counterfeit note Clear micro lettering on genuine note

STR

Exact match on genuine No exact match on counterfeit

Printing Quality

Good printing quality on genuine Poor printing quality on Counterfeit

Watermark

Clear image on genuine Poor image on Counterfeit

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Security features of few foreign currencies
Like Nepalese currency note, foreign currency notes also have similar security feature like
 Water Mark  Intaglio printing
 Security threads  Identification Mark
 Latent Images  Fluorescence
 Micro lettering

In addition to these features, many currency notes have additional feature like
 Optically
 Variable Ink (Colour Shift): IC, US$, Euro  Braille marking: IC, US$, Euro
 Multicolored fluorescent fibres: IC, US$,  3D security Ribbon: US$
Euro  Hologram: Euro
 Letter pressing: IC, US$, Euro  Stoke marking: Chinese Yuan
 Anti scanning printing: US$, Euro  Micro perforation: Euro

Do not rely on just one feature, check all the features. Merely presences of these features do not always
mean the authenticity of currency notes, check their quality as well. The exact replications of these features
as mentioned by the currency issuing agency like NRB in case of Nepalese currency notes, are essential
to verify a genuine currency note.

Clean Note Policy सफा नोट ननती


राष्ट्र बैंकले नयााँ नोटलाई संरक्षण गनन विभिन्न समयमा विभिन्न नीतिगि व्यिस्थाहरू गर्दै आएको छ,
जसलाई सफा नोट नीति ितनन्छ । िी नीतिहरूले नयााँ नोटको संरक्षण कसरी गने िन्ने उल्लेख
गररएको छ ।
राष्ट्र बैंकले नयााँ नोट छपाइ गर्दान आर्थनक रूपमा राज्यले ठूलो धनराभि खर्न गनप
न ने हनन्छ । त्यसैले
नोटको प्रयोग घटाएर विद्यनिीय कारोबार गराउनन पतन राष्ट्र बैंकको लक्ष्य रहे को छ ।

आर्थनक िर्न २०७३ िैिाख १२ गिे सफा नोट नीति जारी गरे को र्थयो । २०७७-२-११ मा संिोधन गरे को
र्थयो ।यसको मख्
न य उद्र्दे श्य िनेकै सिनसाधारण जनिामा सफा िथा गण
न स्िरीय र सफा नोट
र्लनर्ल्िीमा ल्याउने, परन ाना नोट हटाउाँ र्दै जाने िथा नोटको प्रयोग घटाउन सफा नोट नीति ल्याउाँ र्दै
आएको छ ।

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च्यातिएका नोटहरु

राजाका िस्स्िर िएका नोटहरु

बैंक िथा वित्तीय संस्थाले आफ्नो संस्थामा प्राप्ि िएका नोटहरूलाई तनम्न िीन िगनमा छनट्याउनप
न ने
व्यिस्था गरे को छ-
१) एटीएम लगायिका मेभसनहरूको माध्यमबाट र्लनर्ल्िीमा पठाउन योग्य,
२) काउन्टरबाट िनक्िानी गरी र्लनर्ल्िीमा पठाउन योग्य र
३) र्लनर्ल्िीमा पठाउन अयोग्य

• एटीएम लगायिका मेभसनहरूको माध्यमबाट र्लनर्ल्िीमा पठाउन योग्य नोटको प्याकेटमा हररयो
रं गको प्रयोग गनप
न ने व्यिस्था छ ।
• काउण्टरबाट िनक्िानी गरी र्लनर्ल्िीमा पठाउन योग्य नोटको प्याकेटमा सेिो स्स्लप प्रयोग
गनप
न नेछ ।
• र्लनर्ल्िीमा पठाउन अयोग्य नोटको प्याकेटमा रािो स्स्लप प्रयोग गनप
न नेछ ।

मार्थ उल्लेखखि सम्पूणन नोटका स्स्लपहरुमा बैक िथा वित्तीय सस्थाको नाम, कायानलय िाखाको नाम र
छाप, नोट गन्िी गने कमनर्ारीको पररयर् नम्बर, सही र भमति सम्बन्धी वििरण अतनिायन रुपमा हननन
पर्दनछ ।
नोटमा स्स्टर्को प्रयोग गनह
न न र्दैन । यसमा आिश्यकिा अननसार रिर, प्लास्ष्ट्टक िा पेपर बैण्ड प्रयोग गनन
सककनेछ ।

िक्
न िानी गर्दान िा सटही गर्दान र्लन र्ल्िीमा पठाउन योग्य नोट मात्र प्रयोग गनप
न नेछ । िक्
न िानी िा
सटही गनप
न निन नोटलाई तनस्श्र्ि प्रककया अपनाई जीिाणन िथा िाइरस रहहि (Disinfect) गनप
न नेछ ।नोट
राख्ने र्दराज, फतननर्र, िल्ट , नोट ओसारपसार गने सामाग्री सफा हनननपन्छन । साथै नोट िण्डारण गने
ढनकनटी र कारोिार गने कक्षहरुमा यथोर्र्ि प्रकाि एिम Exhaust Fan आहर्दको प्रयोग गरी पयानप्ि हािाको
व्यिस्था िएको हनननपर्दन छ ।

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10

Common questions

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Nepalese currency notes incorporate a range of security features that distinguish them from counterfeit notes. These include visible features like watermarks, which appear when the note is held up to light; metallic security threads that become continuous dark lines under light; and iridescent coatings which appear golden on the reverse side. Latent features include microtext, which requires magnification to read and often includes the bank or country name, and UV markings, where certain elements like serial numbers glow under UV light. Intaglio printing provides a tactile tough on genuine notes that counterfeit notes typically lack. Counterfeit notes often exhibit unclear microtext, lack UV fluorescence, and fail to replicate the fine details of genuine notes .

Microlettering on Nepalese currency acts as a fine security feature, readable under magnification, detailing the bank's name and denomination. This intricate detail often remains unclear on counterfeit notes due to inferior replication processes. Additionally, genuine notes exhibit crisp, defined printing quality and clear images, whereas counterfeit notes tend to show poor print quality and blurred images, aiding identification of fakes .

Nepalese currency notes include tactile features such as intaglio printing, where raised prints can be felt, aiding visually impaired individuals. International currencies employ similar techniques, with some incorporating additional features like Braille markings, found on currencies like the Euro and Indian Rupees. These designs help guide visually impaired individuals in identifying denominations, ensuring accessibility and usability .

Newer Nepalese currency notes have enhanced security features compared to older notes. These include advanced UV features, variable color fluorescence found on new Rs 500 notes, and updated color-shift or optically variable inks. Older notes may lack these sophisticated elements, making newer notes more resistant to counterfeiting techniques .

The Clean Note Policy of Nepal Rastra Bank focuses on promoting the circulation of clean and high-quality notes by reducing the use of worn notes, encouraging digital transactions, and systematically withdrawing soiled and unfit notes from circulation. This policy includes specific packaging guidelines for notes, such as using colored slips to denote notes' quality for recirculation, thus improving the durability and acceptance of currency .

Optically variable inks (OVI) enhance currency security by changing color when viewed from different angles, making replication difficult for counterfeiters. This feature adds a dynamic security layer, visible to the naked eye without any tools. Foreign currencies such as the US Dollar, Indian Rupee, and Euro also employ OVI, reflecting a global trend towards incorporating advanced, easy-to-verify security measures on currency notes .

The metallic security thread in Nepalese currency notes is embedded into the paper and acts as a critical security feature. When viewed against light, it appears as a series of reflective silver dashes that form a continuous dark line, easily detectable without technical equipment. This feature deters counterfeiting by requiring sophisticated printing processes to replicate accurately .

Nepal Rastra Bank suggests several precautions for handling currency notes to ensure hygiene and prevent contamination. These include keeping notes in clean drawers, using disinfectants on notes suspected of carrying germs, and maintaining proper ventilation in areas where money is handled. Additionally, organizations should sanitize all equipment and areas used for currency transactions, such as teller counters and storage vaults .

Nepalese currency notes incorporate several features for physical authenticity verification without special equipment. These include paper quality made from 100% cotton with a natural whiteness and fiber length that create a distinct crackling sound, visible watermarks of the national flower, and tactile intaglio printing. These features allow individuals to verify authenticity through touch and sight .

The circulation of counterfeit currency leads to significant economic impacts, including inflation due to the artificial increase in money supply, a reduction in the value of real money, and a decrease in public trust and acceptance of paper money. The presence of counterfeit currency results in financial losses as entities are not compensated for counterfeit currency detected and confiscated, thereby undermining economic stability .

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