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₹500 Notes Surge, Counterfeits Rise Sharply
29 May
Summary
- ₹500 notes circulation rose 11% in FY26, dominating cash economy.
- Counterfeit ₹500 notes detected increased by 20.5% in FY26.
- 98.45% of ₹2,000 notes returned by March 31, 2026.
During the financial year 2025-26, the volume of ₹500 denomination banknotes in circulation experienced an 11% increase. This growth reinforced the ₹500 note's status as the most prevalent currency in India, constituting 41.2% of all notes by volume and over 86% by value.
The Reserve Bank of India's Annual Report also highlighted a 5.7% rise in counterfeit currency detections across the banking system. Notably, fake ₹500 notes saw a significant 20.5% year-on-year increase, with 1,41,907 counterfeit pieces identified. Counterfeit ₹20 notes also showed a sharp rise of 47.4%.
Overall, the total value and volume of banknotes in circulation grew by 11.9% and 10.5% respectively in FY26, indicating continued demand for cash. The withdrawal of ₹2,000 notes proceeded, with 98.45% of the initially announced amount returned by March 31, 2026. Reduced demand for high-value notes led to a decrease in currency printing expenditure to ₹4,875 crore.
