Form FR 3054b FR 3054b Currency Quality Sampling Survey

OMB No. 7100-0332

Date
Bank Contact
Bank Name
Dear :
The Federal Reserve operates a currency quality monitoring program to ensure that currency in circulation
remains fit for commerce. As part of this monitoring program, the Federal Reserve periodically samples
banknotes from circulation through a currency quality sample, to assess their quality and estimate the
overall quality of currency in circulation. Your institution has been selected to participate in the 2017
Currency Quality Sample. We hope that you will provide your support in this important annual
effort.
The results of the 2016 currency quality sample indicated that the notes received as part of the sample
were of higher quality than the notes the Federal Reserve Banks receive on a daily basis from regular
deposits. This aligned with our expectations that some banks are fitness sorting and sending the Federal
Reserve mostly excess or unfit notes. The Federal Reserve’s shred configuration, which determines when
a note is removed from circulation, was not adjusted as a result of this outcome.
Your participation in the 2017 Sample will help the Federal Reserve continue to ensure accurate estimates
of the quality of currency in circulation. We request that your institution (or your outsourced armored
carrier, as applicable) send your local Federal Reserve office a separate sample deposit for each selected
endpoint, composed of three bundles (3,000 notes) each of the $1, $5, $10 and $20 denominations
between April 3rd and April 17th, for a total of 12 bundles (12,000 notes) per selected endpoint.
Please obtain the sample notes from deposits made by your commercial customers, ensuring the
notes have not been subjected to any type of fitness sorting. For each zone in which your institution
submits a complete sample (three bundles of each denomination) by the April 17th deadline, your
institution will receive a zone-wide waiver for all cross-shipping fees incurred during the week of May 1st.
In addition, the Federal Reserve will also waive any UCAP fees associated with the deposit(s) of sample
notes, provided the samples include three bundles (3,000 notes) of each requested denomination.
The instructions for gathering and sending these sample notes are attached. They are designed to ensure
that we receive a random sample of notes from your deposits (and thus a random sample of currency in
circulation). If you have outsourced your currency operations to an armored carrier, please provide them
with these instructions so that they can gather and send the sample notes on your behalf.
Thank you in advance for your participation in this important process. If you would like any clarification or
you have additional questions, please feel free to contact me at .
Sincerely,

PAPERWORK REDUCTION ACT NOTICE
This request is authorized by law (12 U.S.C. §248) and is voluntary.
Reporting burden for this request is estimated to average 30 minutes or 0.5 hour per response. Send comments regarding this burden estimate or any other aspect of
this information collection, including suggestions for reducing this burden, to Secretary, Board of Governors of the Federal Reserve System, 20th and C Streets, N.W.,
Washington, DC 20551; and to the Office of Management and Budget, Paperwork Reduction Project (7100-0332), Washington, DC 20503.

Attachment I

OMB No. 7100-0332

Currency Quality Sampling Instructions

Thank you for agreeing to participate in the important Federal Reserve effort to collect a
random sample of $1, $5, $10 and $20 notes to assess the overall quality of currency in
circulation. In order to obtain the most accurate estimates, we request that you select and
submit the quantity of notes listed below.
Please note that the procedures below are generic procedures based on a survey of financial
institutions and may not exactly reflect your particular operational environment. If you believe
that your internal procedures are significantly different from the procedures referenced below
and will not yield a sample that is representative of typical deposits that your institution
receives, or if you have any questions, concerns, or suggestions, please call (FRB contact) at
(number/email).

Quantity of sample notes:
Denomination
Ones
Fives
Tens
Twenties

Quantity (must be in whole bundles)
3 bundles (3,000 notes)
3 bundles (3,000 notes)
3 bundles (3,000 notes)
3 bundles (3,000 notes)

Please follow these steps for each selected endpoint when assembling your currency
sample:
1. Notes collected for the currency sample should represent the typical range of fitness
characteristics of your incoming deposits. Please select notes from a variety of
customers on different shifts and/or different days. Do not handpick the worst or
best quality notes from your customers.
2. Select the notes after deposits are piece counted and sorted by denomination.
a. Do not select sample notes from deposits that are fitness sorted prior to
receipt by your facility, such as deposits from your branch network or any
casino customers. Also, the sample should not include any suspected
counterfeit notes.
IF…
A selected endpoint is known to
correspond exclusively to an ATM…
A high-speed processing machine is
used to count, verify, and denomination
sort your commercial deposits…
Your commercial deposits are counted,
verified, and sorted by denomination
either manually or via tabletop
equipment…

THEN…
Disregard that endpoint and call (FRB contact) at
(number/email) to inform them that this
endpoint corresponds exclusively with an ATM.
Ensure that the sample contains the notes that
were out-sorted to the reject pocket as well as
those sorted to the fit pocket(s).
Ensure that the sample contains the notes that
are normally set aside as unfit/”mutilated” as
well as those identified as fit.

Page 2 of 5

Attachment I

OMB No. 7100-0332

Currency Quality Sampling Instructions

3. Combine the notes by denomination and verify that the total quantity is 3 bundles
(3,000 notes) for each denomination ($1s, $5s, $10s, and $20s), for a total of 12
bundles, or 12,000 notes. Please prepare the deposit for the Federal Reserve in
accordance with deposit guidelines in section 4.2 of the Federal Reserve Cash
Manual of Procedures found at the link below:
https://frbservices.org/files/regulations/pdf/operating_circular_2_csmop_010416.pdf
4. Package the notes in standard FRB deposit increments of 100 notes per strap and
10 straps (1,000 notes) per bundle.

5. Each strap should indicate your DI name, ABA routing number, the four-digit
identification number of your depositing office (endpoint number) and the date of
packaging.
6. Place the combined sample notes in its own deposit bag, separate from other
deposit(s), and enclose the “Currency Quality Sample” labeling form (see Attachment
II on page 5 of these instructions) in the bag, preferably printed on colored paper.
Note the sample on a separate shipping manifest if you are sending it in the same
shipment as your regular deposit, and send the deposit to your local Federal Reserve
office.
Deposits should be sent to your local Federal Reserve office anytime between April
3rd and April 17th. On the day of shipment to your local Federal Reserve office,
please notify (FRB contact name and phone number and/or email address) that the
sample has been sent. If applicable, the receiving Federal Reserve office will key the
electronic deposit information for you. If you do not have a scheduled deposit to your
local Federal Reserve office during this two-week period, please contact (FRB contact
name and phone number and/or email address) for further instructions.

Page 3 of 5

Attachment II

CURRENCY QUALITY SAMPLE
FRB Receiving Team:
Please deliver to (FRB contact name) after receipt and
verification.
***************************************
From: ________________________________________
Bank Name
Location: _____________________________________
Endpoint Number: _____________________________
Date of Sample: _______________________________
Currency Quality Sample Notes:
No. of Bundles

Total $ Amount

$1

______

________

$5

______

________

$10

______

________

$20

______

________

(Requested: 3 bundles/$3,000)

(Requested: 3 bundles/$15,000)

(Requested: 3 bundles/$30,000)

(Requested: 3 bundles /$60,000)

Page 4 of 5

Attachment II

Reminder!
Certain endpoints will be depositing currency
meant for the
2017 Currency Quality Sample Program
from April 3rd through April 17th.
The deposits submitted as part of the program should
have this sheet included.
Each bag should contain at least three bundles each of
$1’s, $5’s, $10’s, & $20’s.
Contact management if you are unsure of whether a
deposit should be part of the sample or not.

Please segregate these deposits so that they can be stored for special processing.
THANK YOU!
Page 5 of 5