warsaw, 8 july 2015 standards for banknotes fitness ... · pdf fileversion 1.1 dated 8 july...

Version 1.1 dated 8 July 2015

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Warsaw, 8 July 2015

Standards for banknotes fitness sorting

recommended by Narodowy Bank Polski

Narodowy Bank Polski considers it necessary that recirculated banknotes meet

appropriate fitness standards.

Fitness and authenticity checking of accepted and recirculated banknotes can be

conducted either automatically by banknote handling machines or manually by trained staff

members, i.e. employees in charge of cash handling who have the knowledge of banknote

security features (as defined and promulgated by NBP) and the ability to check them, and who

have the knowledge of the banknote sorting criteria.

Banknotes which have not been classified as genuine in the process of banknote

counting and sorting carried out by a machine or manually by trained staff members are

retained and immediately handed over to Police unit, in accordance with currently applicable

regulations.

It is necessary that banknote handling machines used for banknote authenticity and

fitness checking are subject to tests to confirm their capacity to detect counterfeit banknotes

and identify unfit ones.

It is with the above in mind that the following standards of banknote handling

recommended in cash transactions have been set out:

1) Minimum criteria for automatic checking of banknote fitness (Standard 1);

2) Minimum criteria for manual checking of banknote fitness (Standard 2);

3) General technical requirements for banknote handling machines (Standard 3);

4) Classification and treatment of banknotes counted or sorted by customer-operated

machines (Standard 4);

5) Classification and treatment of banknotes counted or sorted by trained staff-operated

machines (Standard 5).

While presenting these standards, NBP declares it will support cash transactions

market by offering training and allowing manufacturers and service providers of cash

handling machines access to banknotes and information thereof on conditions specified by

NBP. The manufacturers and service providers shall be provided with the information on

banknotes, their machine-readable security features and counterfeit threats. Furthermore,

NBP shall grant access to the test sets of banknotes necessary to adapt machines and test them

in advance of the issue of a new banknote series and thereafter, to enable the construction of

the machines, or their adaptation, so that they meet the requirements set for the upgraded

banknotes before and after their introduction into circulation. NBP shall also give


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manufacturers and service providers access to counterfeit banknotes to enable machine

testing.

Information on banknotes and their security features shall be published on NBP

website (www.nbp.pl) and provided in the course of NBP-conducted staff training.

NBP presents these standards to promote gradual adjustment of the cash transactions

market to new solutions in advance of their entrance into force.


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STANDARD 1

MINIMUM CRITERIA FOR AUTOMATED FITNESS CHECKING OF BANKNOTES

In the course of the fitness checks, banknotes with any defect in respect of which fitness requirements have been

defined as set out in the below table should be deemed unfit.

Table 1. List of sorting criteria for automated fitness sorting Defect Definition

1. Soil General distribution of dirt across the entire banknote

2. Stain Localised concentration of dirt

3. Graffiti Added image or lettering written or marked in any manner on a banknote

4. De-inked Lack of ink on part or whole of the banknote, e.g. a washed banknote

5. Tear Self-explanatory

6. Hole Self-explanatory

7.

Mutilation Banknote with part(s) missing, along at least one edge (in contrast to holes)

8.

Repair Parts of one or more banknotes joined together by tape or glue or other

9. Crumples Multiple random folds

10.

Limpness Structural deterioration resulting in a marked lack of stiffness

11. Fold Self-explanatory

12.

Folded corner Self-explanatory

Further information on sorting criteria (banknote reproductions display samples of defects and the scale

thereof):

1. Soil

Soil increases the optical density of banknotes. The following table specifies the maximum density increase of limit

samples compared to new banknotes that banknotes may exhibit to be classified as fit:

Optical density levels for banknotes issued in 2012*

Denomination Maximum density increase of limit

sample compared to a new banknote Filter

10 zł 0.07 magenta

20 zł 0.07 magenta

50 zł 0.07 magenta

100 zł 0.07 magenta

* Sample images of banknotes (1994 issue) which are fit or unfit due to being soiled are contained in Standard 2.

The density increase of a reference banknote is the highest between the averages of at least four measurement

points measured on the front and on the back of the banknote in the unprinted area and without any watermark

modulation. Banknotes not meeting these criteria are unfit.

2. Stain

Banknotes with a localised concentration of dirt covering at least 9 mm by 9 mm in the non-printed area or at least

15 mm by 15 mm in the printed area are unfit.


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3. Graffiti

There is no mandatory requirement to sort banknotes in respect of this defect (as regards detection of added image

or lettering, written or marked).

4. De-inked note

De-inking of banknotes can occur e.g. if they have been washed or subjected to aggressive chemical agents. These

kinds of unfit banknotes might be detected by image detectors of UV detectors.

5. Tear

Banknotes with tears which are open and not partly or fully covered by the machine’s transport belt(s) are unfit if

the size of tear is greater than indicated below.

Tear Direction Width Length

Vertical 4 mm 8 mm

Horizontal 4 mm 15 mm

Diagonal 4 mm 18 mm *)

*) This is measurement by drawing a straight line from the peak of the tear to the edge of the banknote where the tear begins

(rectangular projection), rather than measuring the length of the tear itself.

.


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6. Hole

Banknotes with holes which are not partly of fully covered by the machine’s transport belt(s) are unfit if the area of

the hole is greater than 10 mm2.

7. Mutilation

Banknotes with lengths reduced by 6 mm or more or widths reduced by 5 mm or more are unfit. All measurements

relate to differences from the nominal lengths and widths of the banknotes.

8. Repair

Banknote with an adhesive tape covering an area greater than 10 mm by 40 mm and which is more than

50 μm thick is unfit.


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9. Crumples

Crumpled banknotes can normally be identified if their level of reflectance or stiffness is reduced. There is no

mandatory requirement to sort banknotes in respect of this defect.

10. Limpness

Banknotes with very little stiffness should be sorted as unfit. As limpness normally correlates with soiling, limp

banknotes are generally also detected via soil sensors. There is no mandatory requirement to sort banknotes in

respect of this defect.

11. Fold

Folded banknotes, because of their reduced length or width, can be detected by sensors checking the size of the

banknotes. In addition, they can be detected by thickness sensors. However, due to technical limitations, only folds

fulfilling the criteria laid down for mutilations, i.e. folds leading to a reduction in length greater than 6 mm or a

reduction in width greater than 5 mm, can be identified and are unfit.

12. Folded corner

A banknote with a folded corner with an area of more than 220 mm2 and a minimum length of the smaller edge

greater than 15 mm is unfit.


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STANDARD 2

MINIMUM CRITERIA FOR MANUAL FITNESS CHECKING OF BANKNOTES

In the course of the fitness checks by trained personnel, banknotes with any defect as set out in the table below, or

with a clearly noticeable defect in one of the visible security features, should be deemed unfit. However, folded

banknotes and banknotes with folded corners may be rectified by manual unfolding. The fitness checks are carried

out by a visual inspection of the individual banknotes and do not require the use of any tools.

List of sorting criteria for manual fitness checking

Defect Description

1. Soil Visually noticeable distribution of dirt across the banknote

2. Stain Visually noticeable localised concentration of dirt

3. Graffiti Visually noticeable added image or lettering written or marked in any manner on

the banknote

4. De-inked note Visually noticeable lack of ink on part or whole of the banknote, e.g. a washed

banknote

5. Tear Banknote with at least one tear at the edge

6. Hole Banknote with at least one visually noticeable hole

7. Mutilation Banknote with a part/parts missing along at least one edge (in contrast to holes), e.g.

a missing corner

8. Repair Parts of one or more banknotes joined together by tape, glue or other means

9. Crumples Banknote with multiple random folds across it that strongly affect its visual

appearance

10. Limpness Banknote with structural deterioration resulting in a marked lack of stiffness

11. Folded banknote Banknote that is folded, including a banknote that cannot be unfolded

12. Folded corner Banknote with at least one clearly noticeable folded corner

IMAGES OF SOIL SAMPLES OF BANKNOTES ISSUED IN 1994.

In each set of images of particular banknote denominations banknotes 1 and 2 are fit banknotes, banknote 3 is a

“borderline fitness” banknote, while banknotes 4 and 5 are unfit banknotes.


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10 zł denomination 20 zł denomination

50 zł denomination 100 zł denomination

1

2

3

4

5

5

5

5

4

4

4

3

3

3

2

2

2

1

1

1


9

200 zł denomination

5

4

3

2

1


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STANDARD 3

GENERAL TECHNICAL REQUIREMENTS FOR BANKNOTE HANDLING MACHINES

A banknote handling machine is a device used for checking authenticity or fitness of banknotes, the

technical requirements for which are set out in the following table.

Banknote handling machines are either customer-operated or staff-operated machines.

Table 1. Customer-operated machines

A. Customer-operated machines where cash is deposited with customer tracing.

1. Cash-in machines (CIMs)

CIMs allow customers, by using a bank card or other means,

to deposit banknotes in their bank accounts, but do not have

any cash-dispensing function. CIMs check banknotes for

authenticity and allow for traceability of the account holder;

fitness checks are optional.

2. Cash-recycling machines (CRMs)

Working in closed cycle, CRMs allow customers, by using a

bank card or other means, to deposit banknotes in their bank

accounts and to withdraw banknotes from their bank

accounts. CRMs check banknotes for authenticity and fitness

and allow for traceability of the account holder. For

withdrawals, CRMs may use genuine fit banknotes that have

been deposited by other customers in previous transactions.

3. Combined cash-in machines

(CCMs)

Not working in closed cycle, CCMs allow customers, by

using a bank card or other means, to deposit banknotes in

their bank accounts and to withdraw banknotes from their

bank accounts. CCMs check banknotes for authenticity and

allow for traceability of the account holder; fitness checks are

optional. For withdrawals, CCMs do not use banknotes that

have been deposited by other customers in previous

transactions but only banknotes loaded separately into them.

B. Other customer-operated machines without customer tracing function

1. Cash-out machines (COMs) COMs are cash dispensers which check banknotes for

authenticity and fitness before dispensing them to customers

(e.g. automatic teller machines, vending machines).


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Table 2. Staff-operated machines

1. Banknote processing machines

(BPMs)

BPMs check banknotes for authenticity and fitness

2. Banknote authentication machines

(BAMs)

BAMs check banknotes for authenticity

3. Teller assistant recycling machines

(TARMs)

Working in closed cycle, TARMs are cash recycling

machines operated by cash handlers that check banknotes

for authenticity and fitness. For withdrawals, TARMs may

use genuine fit banknotes that have been deposited by other

customers in previous transactions. In addition, they keep

banknotes in safe custody and allow cash handlers to credit

or debit the bank accounts of customers.

4. Teller assistant machines (TAMs)

TAMs are machines operated by cash handlers that check

banknotes for authenticity. In addition, they keep banknotes

in safe custody and allow cash handlers to credit or debit

the bank accounts of customers.


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STANDARD 4

CLASSIFICATION AND TREATMENT OF BANKNOTES COUNTED OR SORTED BY CUSTOMER-

OPERATED MACHINES

Banknotes are classified into one of the following categories and physically separated by category.

Machines which do not check banknotes for fitness do not need to distinguish between categories 4a

and 4b.

Table 1. Classification and treatment of banknotes counted or sorted by customer-operated machines

in which cash is deposited with customer tracing

Category Properties Treatment of banknotes in the course

of their counting or sorting by the

device

1. Objects not

recognised as

Polish banknotes

Not recognised as banknotes because

of any of the following:

- notes other than Polish notes,

- Polish banknote-like objects (wrong

image or format),

- large folded corner(s) or missing

part(s),

- feeding or transportation error of the

machine.

Dispensed by the machine to the

customer.

2. Suspect

counterfeit

banknotes

Recognised image and format, but one

or more authentication feature checked

by the machine not detected or clearly

out of tolerance.

Seized by the machine. To be

immediately handed over to Police

unit in line with applicable

regulations.

Customer account should not be

credited. Customer data should be

safely stored.

3. Banknotes that

are not clearly

authenticated

Recognised image and format, but not

all authentication features checked by

the machine recognised because of

quality and/or tolerance deviations. In

most cases these are unfit banknotes.

Authentication checked by trained

personnel.

After banknotes authentication, the

customer’s account may be credited.

Cannot be used for recirculation – they

should be returned to NBP.

If banknote authenticity raises doubt

of the trained personnel, banknotes

are to be immediately handed over to

Police unit, in line with applicable

regulations. Customer account should

not be credited. Customer data should

be stored.

4a. Banknotes that

are identified as

genuine and fit

All authentication and fitness checks

carried out by the machine giving

positive results.

Can be used for recirculation.

Can be credited to the customer

account.

4b. Banknotes that

are identified as

genuine and unfit

All authentication and fitness checks

carried out by the machine giving

positive results.

Cannot be used for recirculation,

banknotes are to be returned to NBP.


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At least one fitness criterion checked

giving a negative result.

Can be credited to the customer

account.

Specific rules regarding Table 1.

Categories 2 and 3 banknotes are not returned to the customer by a machine if the machine allows

cancellation of a deposit transaction. Retaining such banknotes when a transaction is cancelled can be

done by storing them in a temporary storage area in the machine.

Table 2. Classification and treatment of banknotes counted or sorted by other customer-operated

machines in which cash is deposited without customer tracing

Category Properties

Treatment of banknotes in the

course of their counting or sorting

by the device

1. Objects not recognised

as Polish banknotes

Not recognised as banknotes

because of any of the following:

- banknotes not serviced by the

machine,

- notes other than Polish

banknotes,

- objects similar to Polish

banknotes,

- wrong image or format,

- large folded corner(s) or missing

part(s),

- feeding or transportation error

of the machine.

Return by the machine to the

customer.

2. Suspect counterfeit

banknotes

Recognised image and format,

but one or more authentication

feature checked by the machine

not detected or clearly out of

tolerance.

Return of the banknote by the

machine to the customer.

3. Banknotes that are not

clearly authenticated


but not all authentication features

checked by the machine

recognised because of quality

and/or tolerance deviations. In

most cases these are unfit

banknotes.

Return of the banknote by the

machine to the customer.

4a. Banknotes that are

identified as genuine

and fit

All authentication and fitness

checks carried out by the machine

giving positive results.

Can be dispensed to another

customer

4b. Banknotes that are


and unfit


checks carried out by the machine

giving positive results.

At least one fitness criterion

checked giving a negative result.

Cannot be dispensed to another

customer, are to be returned to

NBP.


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Specific rules regarding Table 2.

Categories 2 and 3 banknotes are returned to the customer (not accepted by the machine as payment),

since neither the customer can be identified in the case the banknote is counterfeit, which prohibits

instigating proceedings, nor the tantamount amount can be returned to the customer when the banknote

is authenticated as genuine. If the machine is installed in a shop, personnel may seize the returned

banknote based on separate regulations.


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STANDARD 5

CLASSIFICATION AND TREATMENT OF BANKNOTES COUNTED AND SORTED BY

TRAINED STAFF-OPERATED MACHINES

Banknotes are classified into one of the categories listed in Table 1.

Categories 4a and 4b banknotes are physically separated from categories 1, 2 and 3 banknotes. Machines

which do not check banknotes for fitness do not need to distinguish between categories 4a and 4b

banknotes.

Table 1. Classification and treatment of banknotes counted and sorted by trained staff-operated

machines

Category Properties Treatment of banknotes in the course

of their counting or sorting by the

device

1. Objects not

recognised as Polish

banknotes

Not recognised as banknotes

because of any of the following:

- banknotes not serviced by the

machine,

- notes other than Polish

banknotes,

- objects similar to Polish

banknotes,

- wrong image or format,

- large folded corner(s) or

missing part(s),

- feeding or transportation error

of the machine.

Return by machine to the operator

for further evaluation and treatment.

After visual evaluation by a staff

member banknotes may be returned

to the customer by the cash handler.

2. Suspect counterfeit

banknotes


but one or more authentication

feature checked by the machine

not detected or clearly out of

tolerance.



When classified as suspect

counterfeit banknotes by an

operator, in accordance with

applicable regulations, the

banknotes are immediately handed

over to Police unit.

3. Banknotes that are

not clearly

authenticated


but not all authentication

features checked by the machine

recognised because of quality

and/or tolerance deviations. In

most cases these are unfit

banknotes.



When classified as suspect

counterfeit banknotes by an

operator, in accordance with binding

regulations, the banknotes are

immediately handed over to Police

unit.

4a. Banknotes that are


and fit


checks carried out by the

machine giving positive results.

Can be used for recirculation.

Credited to the customer account.


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4b. Banknotes that are


and unfit


checks carried out by the

machine giving positive results.

At least one fitness criterion

checked giving a negative result.

Cannot be used for recirculation,

banknotes are to be returned to NBP.

Credited to customer account.

Specific classification and sorting rules for some staff-operated machines.

1. Banknote processing machines (BPMs) classify and physically sort categories 1, 2 and 3 banknotes to one or

more output stackers, and categories 4a and 4b banknotes to two or more dedicated output stackers, as set out

by Standard 3. To avoid the intervention of the machine operator, at least three dedicated output stackers are

needed.

2. BPMs with only two dedicated output stackers may however classify and sort banknotes if the following

requirements are fulfilled:

a) The authenticity and fitness checks are conducted in the same pass. In this pass, any category 4a banknotes

must be sorted into one stationary output stacker, whereas all other categories banknotes must be sorted

into a separate stationary output stacker that does not have any physical contact with any category 4a

banknotes;

b) If a category 1, 2 or 3 banknote is identified as being present in the second output stacker, the operator

must re-run the banknote(s) from the second output stacker. In this second pass, categories 1, 2 and 3

banknotes must be separated from category 4b banknotes by sorting the former categories banknotes into

a dedicated output stacker and their classification in accordance with the above Table. As the machine has

no capacity to physically sort categories 1, 2 and 3 banknotes to dedicated output stackers, all these

banknotes should be classified as category 2 banknotes and processed accordingly.

3. BAMs classify and physically sort categories 1, 2 and 3 banknotes into one dedicated output stacker, and

categories 4a and 4b banknotes into another dedicated stacker, for which at least two dedicated output stackers

are needed to avoid intervention of the machine operator.

4. BAMs with only one dedicated output stacker may however classify and sort banknotes if the following

requirements are fulfilled:

a) Each time a category 1, 2 or 3 banknote is processed, the machine must stop the processing immediately

and keep the banknote in a position that avoids any physical contact with authenticated banknotes;

b) The result of the authenticity check for any single category 1, 2 or 3 banknote must be indicated on a

display. As the machine cannot physically separate categories 1, 2 and 3 banknotes by placing them in

separate dedicated output stackers, these banknotes should be all classified as category 2 banknotes and

treated accordingly;

c) The machine must check for the presence of categories 1, 2 and 3 banknotes when it stops processing, and

processing can only be resumed after the physical removal of the categories 1, 2 and 3 banknotes by the

operator;

d) For each stop of the processing mode no more than one category 1, 2 or 3 banknote can be accessible to

the operator.

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