Fake Rs 500 Denomination Notes Surged 37 % In FY25: RBI Annual Report

Mumbai: The Reserve Bank of India (RBI) on Thursday said that the number of fake Rs 500 denomination notes (new design) detected in the banking system surged by 37.3 per cent in the year 2024-25 to 1.18 lakh from 85,711 in 2023-24, the highest level in six years (since FY20). The number of counterfeit notes below Rs 200 denomination also rose by 13.9 per cent YoY to 32,600 pieces. On the other hand, detection of fake Rs 100 denomination notes declined nearly 23 per cent in Fy25 to 51,069 pieces.

“The counterfeit notes detected in the denominations of ₹10, ₹20, ₹50, ₹100 and ₹2000 declined during 2024-25, while those in ₹200 and ₹500 denominations increased by 13.9 and 37.3 per cent, respectively, as compared with the previous year,” said the RBI Annual Report FY25 released on Thursday.

The Reserve Bank is no longer printing banknotes of denominations of ₹2, ₹5 and ₹2000, it said.

With the RBI withdrawing Rs 2000 notes from circulation, counterfeit notes of Rs 2000 denomination fell 86.5 per cent to 3,508 pieces in FY25 from 26,035 in FY24.

The total number of counterfeit notes detected by the RBI and banks stood at 2.17 lakh in April 2024-March 2025, lower than 2.22 lakh in 2023-24. Out of the total Fake Indian Currency Notes (FICNs) detected in the banking sector, 4.7 per cent were detected at the Reserve Bank and 95.3 per cent at banks, the annual report said. The Rs 500 note has now become the most commonly used currency note in India. It makes up 40.9 per cent of the total number of notes in circulation. In terms of value, it holds as high as 86 per cent share of the total money floating in the system.

The volume of coins in India grew by 3.6 per cent, while their total value increased by 9.6 per cent in FY25. Rs 1, Rs 2, and Rs 5 coins remain the most used coins, together making up 81.6 per cent of all coins in circulation.