Sharp rise in counterfeit Rs 500 notes detected in 2024-25

The total currency in circulation grew by 6% in value and 5.6% in volume in FY25, with Rs 500 notes dominating and Rs 10, Rs 20, and Rs 50 notes comprising 31.7% of total volume

The Reserve Bank of India (RBI) has reported a significant jump in counterfeit currency detection, particularly in Rs 500 denomination notes, during the financial year 2024–25. According to its annual report released on Thursday (May 29), fake Rs 500 notes surged by 37.3% over the previous year.

A total of 1.18 lakh counterfeit Rs 500 notes (new design), with a face value of ₹5.88 crore, were detected in 2024–25. This marks a sharp increase from 85,711 notes valued at ₹4.28 crore reported in 2023–24. The central bank highlighted that these notes continue to form the bulk of fake currency discovered across the banking system.

The report also noted a 13.9% rise in counterfeit Rs 200 notes. A total of 32,660 fake notes in this denomination were found, valued at ₹65.32 lakh, compared to 28,672 notes worth ₹57.34 lakh the previous year.

Lower denomination notes, including Rs 10, Rs 20, Rs 50, and Rs 100, accounted for a combined 91.1% of counterfeit detections in these categories. The detection rates for these were 32.3%, 14%, 21.8%, and 23% respectively.

Overall counterfeits slightly down

On a more positive note, fake Rs 2,000 notes saw a sharp 86.5% decline. Only 3,508 counterfeit notes were identified in FY25, compared to 26,035 in FY24, following the denomination’s gradual withdrawal from circulation.

Despite notable rises in specific denominations, the overall number of counterfeit currency notes detected declined slightly to 2.17 lakh in 2024–25, from 2.22 lakh in the previous year. Of these, 95.3% were flagged by banks and 4.7% by the RBI.

Meanwhile, the total value and volume of currency in circulation grew by 6% and 5.6% respectively. Rs 500 notes continued to dominate, comprising 86% of the value and 40.9% of the volume of total banknotes in circulation. In volume terms, Rs 10 notes were the next most circulated at 16.4%.

The combined volume of Rs 10, Rs 20, and Rs 50 notes accounted for 31.7% of all currency notes in circulation by the end of FY25.