The Reserve Bank of India’s latest annual report reveals a 5.7 per cent surge in counterfeit currency detections within the banking system for fiscal year 2025-26, primarily driven by a significant increase in fake Rs 500 and Rs 20 notes.
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Key Points
- Counterfeit currency detections in the Indian banking system increased by 5.7 per cent in 2025-26, reaching 2,29,746 pieces.
- Fake Rs 500 notes were the most frequently detected, rising 20.5 per cent to 1,41,907 pieces.
- Counterfeit Rs 20 notes saw a significant jump of 47.4 per cent, though from a smaller base.
- The detection of fake Rs 2,000 notes continued to decline sharply due to the denomination’s withdrawal from circulation.
- The majority of counterfeit notes (97.6 per cent) were detected by other banks, with the RBI detecting 2.4 per cent.
Detection of counterfeit currency notes in the banking system rose 5.7 per cent in 2025-26, led by a sharp increase in fakes found in Rs 500 and Rs 200 denominations, the RBI said on Friday.
The total number of counterfeit notes detected increased to 2,29,746 pieces in 2025-26, up from 2,17,396 in the preceding financial year, RBI said in its annual report.
Rise in Rs 500 and Rs 20 Counterfeits
Fake Rs 500 notes remained the most detected denomination, rising 20.5 per cent to 141,907 pieces during the year from 117,722 in 2024-25.
Counterfeit Rs 20 notes registered one of the sharpest increases, jumping 47.4 per cent to 373 pieces from 253 a year ago.
Besides, fake Rs 200 denomination notes fell to 30,591 pieces in 2025-26 from 32,660 in the previous year, while counterfeit Rs 100 notes declined to 45,621 from 51,069. Detection of fake Rs 50 notes also fell to 10,274 pieces from 12,015.
Decline in Rs 2,000 Note Forgeries
Counterfeit Rs 2,000 notes continued to decline sharply amid the withdrawal of the denomination from circulation, dropping to 824 pieces in 2025-26 from 3,508 in the previous year.
The RBI said 97.6 per cent of the counterfeit notes, or 2,24,334 pieces, were detected at other banks, while the central bank detected 5,412 notes, accounting for 2.4 per cent of the total. The figures exclude counterfeit notes seized by police and other enforcement agencies.
Disposal of Soiled Banknotes
Further, the central bank said disposal of soiled banknotes declined sharply in 2025-26, with 1.72 lakh pieces, compared with 2.38 lakh pieces in the previous financial year, a decline of about 28.6 per cent.
Among denominations, disposal of Rs 500 notes remained the highest at 59.8 lakh pieces during 2025-26, down from 89.8 lakh pieces a year ago.
Disposal of Rs 20 notes fell to 9.8 lakh pieces from 16.50 lakh pieces, while Rs 100 notes were largely steady at 58.1 lakh pieces. PTI MSU AA HVA
