Sorting of Notes - Processing on Note Sorting Machines(NSMs) - Clarification
Ref. No. NB. DoS/ POL/ 113 /J-1/2019-20
9th April 2019
Circular No. 100 /DoS - 10/2019
The Managing Director/Chief Executive Officer
All Scheduled State Cooperative Banks
Dear Sir
Sorting of Notes - Processing on Note Sorting Machines (NSMs)-Clarification
We invite your attention to Reserve Bank of India’s circular DCM.No.Cir.NPD.3161/09.39.00(Policy)/2009-2010 dated 19th November 2009 on the above subject.
2.  In this connection, we furnish the following clarification: -
‘In order to ensure that the cash received by the Currency Chest is first processed on Note Sorting Machines (NSMs), mandatory verification of records of receipt of cash and its processing on NSMs, by an officer other than the joint custodians, on a weekly basis, shall be introduced and a record thereof maintained for verification by the Reserve Bank of India. 
It must be ensured that on receipt of cash at the Currency Chest, from bank branches/customers, etc., it shall be first processed on NSMs before being circulated further or remitted to Reserve Bank of India in case of soiled notes. In this context, it is advised that the Directions contained in RBI’s Directive DCM. No. Dir. NPD.3158/09.39.00 (Policy)/2009-10 dated November 19, 2009, issued with circular DCM. No. Cir. NPD. 3161/09.39.00(Policy)/2009-2010 dated November 19, 2009, should be complied with meticulously.’
3.    Please acknowledge receipt of this circular to our Regional Office concerned.
Yours faithfully 
(K. R. Rao)
Chief General Manager