Upon completion of this program, participants will be able to:

• Explain the central bank's mandate for currency issuance, quality, and integrity.
• Develop and implement quantitative **currency fitness standards** for both banknotes and coins.
• Design a robust system for cash demand forecasting, issuance, and stock management.
• Analyze the operational procedures for the secure destruction and withdrawal of unfit currency.
• Evaluate the effectiveness of security features and anti-counterfeiting measures.
• Understand the legal framework and enforcement related to counterfeiting and currency abuse.
• Formulate an effective public communication strategy to manage currency transitions and fitness campaigns.
• Assess the impact of digitalization (e.g., CBDC) and changing payment habits on cash management policy.

• Central Bank Currency and Cash Operations Managers
• Policy Analysts focusing on Cash and Payment Systems
• Security and Anti-Counterfeiting Specialists
• Commercial Bank Cash Management and Treasury Staff
• Law Enforcement and Legal Professionals specializing in Counterfeiting
• Public Relations and Communications Professionals in Central Banking

Cash demand forecasting exercises, Security feature analysis workshop, Case studies on historical demonetization events, Group project on drafting a public communication plan for a new note series, Technical deep dives into automated sorting, Discussions on CBDC impact on cash operations.

Unit 1: Currency Issuance and Fitness Standards

• The legal status of currency as legal tender and the central bank's monopoly on issuance.
• The concept of the **Currency Life Cycle** (design, issuance, circulation, withdrawal).
• Public trust and the importance of maintaining high fitness standards.
• Coordination with mints, printers, and commercial cash handlers.

• Quantitative and qualitative parameters for defining a "fit" banknote.
• The use of automated sorting machines and sensors for fitness determination.
• Monitoring the circulation life and wear-and-tear of various denominations.
• Policy for managing damaged, mutilated, or contaminated currency.

Unit 2: Forecasting, Operations, and Security

• Methodologies for forecasting seasonal, cyclical, and structural cash demand.
• Logistical management of secure currency movement and inventory control.
• Protocols for issuing and receiving currency from commercial banks and cash handlers.
• The central bank's role in managing the cost of the cash cycle.

• Analysis of emerging counterfeiting threats and techniques.
• Evaluation of banknote security features (e.g., holograms, watermarks, specialized printing).
• Procedures for authenticating and withdrawing suspected counterfeit currency.
• Legal framework for counterfeiting offenses and collaboration with law enforcement.

Unit 3: Withdrawal and Policy Strategy

• Operational procedures for the secure destruction of unfit or demonetized currency (e.g., shredding, briquetting).
• Establishing a clear, auditable process for accounting for destroyed currency.
• Policy on the withdrawal of old series or demonetized notes.
• Managing the environmental impact of currency production and destruction.

• Developing clear public communication strategies for new note series issuance.
• Managing the transition during currency withdrawal or demonetization.
• Public education campaigns on security features and fitness standards.
• Addressing public concerns and misinformation during periods of cash policy change.

Unit 4: Future of Cash and Policy Challenges

• Analyzing the decline in cash usage and its implications for central bank policy.
• The interaction between cash policy and the introduction of a Central Bank Digital Currency (CBDC).
• Ensuring cash accessibility and financial inclusion for all segments of the population.
• The future role of the central bank in the payment ecosystem.