Chapter III — Central Banking Functions

Section 25: Form of bank notes

Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026

Section 25 provides that the design, form and material of bank notes are approved by the Central Government after considering RBI's recommendations.

Operative provisionOfficial sources mappedProvision-specific decode

Finin2min - Section 25 in 2 minutes

Legal effectSection 25 provides that the design, form and material of bank notes are approved by the Central Government after considering RBI's recommendations.

Operative ruleThe provision allocates responsibility between RBI and the Central Government for the physical/form design of notes; operational printing and security features are implemented through official processes.

Connected lawIt does not allow private parties to infer validity from visual similarity alone; authenticity depends on lawful issue by RBI and the applicable series specifications.

File evidenceFor counterfeit/authenticity issues, use RBI's official note-identification guidance alongside the statutory design authority.

Statutory structure and clause / subsection decode

This map separates the operative limbs of this provision so thresholds, powers, conditions and exceptions are not collapsed into a single summary.

Rule 1

The provision allocates responsibility between RBI and the Central Government for the physical/form design of notes

Rule 2

operational printing and security features are implemented through official processes.

Connected rule

It does not allow private parties to infer validity from visual similarity alone; authenticity depends on lawful issue by RBI and the applicable series specifications.

Worked practical example

Facts. A redesigned note is not invalid simply because it differs from an older series if the new form has been lawfully approved and issued.

Compliance points and common mistakes

Do not decide the issue from the heading alone. Map the facts to the operative words of Section 25 and to each relevant subsection, clause, proviso or explanation shown above.
Keep the statutory question separate from the operational overlay. It does not allow private parties to infer validity from visual similarity alone; authenticity depends on lawful issue by RBI and the applicable series specifications.
Do not convert an exception, exemption or discretionary RBI/Government power into an automatic entitlement. Record the authority, conditions and effective date.
Where the provision is historical, omitted or repealed, state that status prominently and do not present it as a current compliance obligation.

Connected provisions and instruments

Section 25 has no universal instrument dependency in this package. Add an RBI circular or direction only when its subject, entity and effective date cover the issue being analysed.

Questions and answers

What is the purpose of Section 25?

Form of bank notes: Section 25 provides that the design, form and material of bank notes are approved by the Central Government after considering RBI's recommendations.

Which statutory limb should be checked first?

Rule 1 - The provision allocates responsibility between RBI and the Central Government for the physical/form design of notes

What is the next legal boundary?

Rule 2 - operational printing and security features are implemented through official processes.

What record should support the conclusion?

Section 25 file evidence: For counterfeit/authenticity issues, use RBI's official note-identification guidance alongside the statutory design authority.

Primary sources

Source control for Section 25: use the official consolidated RBI Act for the statutory text and footnotes, then separately reconcile any post-Finance Act 2022 amendment, commencement notification or RBI instrument relevant to the event date.