Fake Rs 500 Notes Rise Over 20 Per Cent In FY26, RBI Annual Report Shows

Currency circulation expanded further in 2025-26, with the volume of banknotes in circulation rising 10.5 per cent year-on-year. The Rs 500 note remained the most widely circulated denomination across the country. At the same time, banks reported a rise in the number of counterfeit currency notes detected during the year.

The number of Rs 500 notes in circulation rose to 7,05,482 lakh pieces at the end of March 2026, up from 6,34,458 lakh pieces a year earlier. In value terms, the denomination accounted for Rs 35.27 lakh crore, compared with Rs 31.72 lakh crore in FY25.

The total number of counterfeit notes detected in the banking system rose 5.7 per cent to 2,29,746 pieces in 2025-26, compared with 2,17,396 pieces in the previous financial year.

Fake Rs 500 Notes Lead Rise In Counterfeit Currency In FY26

Among all denominations, Rs 500 notes accounted for the highest number of counterfeit currency detections during 2025-26. According to the RBI's Annual Report 2025-26, the number of fake Rs 500 notes detected in the banking system increased by 20.5 per cent to 1,41,907 pieces during the year, compared with 1,17,722 pieces detected in 2024-25.

The number of counterfeit Rs 20 notes detected by the banking system increased to 373 pieces in 2025-26 from 253 pieces a year earlier, marking a 47.4 per cent rise. While detections of fake Rs 200, Rs 100 and Rs 50 notes declined during the financial year.

Fake Rs 2,000 notes continued to decline following the withdrawal of the denomination from circulation. Detection of counterfeit Rs 2,000 notes fell to 824 pieces in 2025-26 from 3,508 pieces in the previous year.

Banks Detect Most Fake Notes

According to the RBI, banks detected 2,24,334 counterfeit notes during 2025-26, accounting for 97.6 per cent of the total counterfeit currency identified across the banking system. The Reserve Bank of India detected the remaining 5,412 counterfeit notes, representing 2.4 per cent of the total. The central bank clarified that these figures do not include counterfeit notes seized directly by police or other law enforcement agencies.

Apart from banknotes, coin circulation also increased during 2025-26, with the total value of coins in circulation rising 11.4 per cent and their volume increasing 4.5 per cent.

The withdrawal of Rs 2,000 notes also continued during the year. Out of the total Rs 3.56 lakh crore worth of Rs 2,000 notes in circulation at the time of the May 2023 announcement, 98.45 per cent had been returned to the banking system by March 31, 2026.