Overview

• Counterfeit Rs500 notes in the banking system hit a six-year peak, rising 37.35% year-on-year to 117,722 pieces in FY25.
• Total counterfeit currency detections declined for the third straight year to 217,396 notes in FY25, down from 222,639 in FY24.
• Following the May 2023 withdrawal of Rs2000 notes, their counterfeit detections plunged 86.5% to 3,508 pieces in FY25, with 98.24% of those notes returned.
• The Rs500 denomination now makes up 40.9% of notes in circulation and 80.6% of the total currency value, underscoring its appeal to forgers.
• Digital rupee transactions jumped 334% in FY25 as the RBI accelerates digital payment adoption to reduce cash reliance and thwart counterfeiting.