Banknotes are a type of negotiable instrument which are issued by the RBI and payable to bearer on demand. It is one
of the most frequently used things in our daily life for purchasing and exchanging of things. So it has more chance to being
counterfeited. In India, there are more cases of the counterfeit of the banknotes. Therefore in order to prevent its counterfeit, the
security features are incorporated into the banknotes either during its manufacturing and its preparation. These features secure
the banknotes from counterfeiting. There are number of security features that can seen under the normal light condition and
help the layman to identified and find the difference between the genuine and counterfeited one. This paper makes efforts to
security features which are present in our new banknotes. By adding new security features in the banknotes, government reduce
the chance of counterfeiting of bank notes.