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Counterfeit ₹500 Notes Rise More Than 20%, Says RBI
The ₹500 denomination strengthened its position as India’s most widely circulated currency note in FY26, with circulation rising over 11 per cent, while the Reserve Bank of India reported a significant increase in detected counterfeit ₹500 notes.
The Reserve Bank of India has reported a sharp increase in the circulation of ₹500 denomination banknotes during FY26, further cementing their position as the dominant currency note in India’s cash-based economy.
According to the RBI’s Annual Report 2025-26, the volume of ₹500 notes in circulation increased by approximately 11.2 per cent during the financial year.
The number of ₹500 notes rose from 6,34,458 lakh pieces at the end of March 2025 to 7,05,482 lakh pieces by the end of March 2026.
₹500 Notes in Circulation
| Category | FY25 | FY26 | Change |
|---|---|---|---|
| Volume (Lakh Pieces) | 6,34,458 | 7,05,482 | ▲ 11.2% |
| Value (₹ Lakh Crore) | 31.72 | 35.27 | ▲ 11.2% |
In value terms, the total amount represented by ₹500 notes increased from ₹31.72 lakh crore in FY25 to ₹35.27 lakh crore in FY26, highlighting their growing share in the country’s currency ecosystem.
However, the RBI also noted a concerning rise in counterfeit currency detection. The number of fake ₹500 notes identified during FY26 increased by more than 20 per cent compared to the previous year.
The ₹500 denomination remains the backbone of India’s cash circulation due to its widespread use in retail transactions, business payments, and cash withdrawals. Since the withdrawal of higher-denomination ₹2,000 notes from circulation, the importance of ₹500 notes in the currency system has increased further.
The RBI continues to monitor counterfeit currency trends and has urged the public and financial institutions to remain vigilant and use security features embedded in banknotes to verify authenticity.