Fake ₹500 notes at six-year high in FY25, ₹2000 counterfeits fall: RBI

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Counterfeit notes of ₹500 denomination (excluding specified banknotes) detected in the banking system rose 37.35 per cent year-on-year (YoY) to 1,17,722 in 2024–25 from 85,711 in 2023–24, the highest level in six years (since FY20), the Reserve Bank of India’s (RBI’s) annual report showed.

 

The number of counterfeit notes below ₹200 denomination also rose by 13.9 per cent YoY to 32,600 pieces. On the other hand, detection of fake ₹100 denomination notes declined nearly 23 per cent YoY to 51,069 pieces. 

 

Fake ₹2000 denomination notes saw a steep 86.5 per cent drop to 3,508 pieces in FY25 from a five-year high of 26,035 in FY24. Last year’s spike had been attributed to the withdrawal of ₹2000 notes from circulation and the large-scale processing of these notes by banks.

 

The RBI had announced the withdrawal of ₹2000 banknotes from circulation on 19 May 2023. The total value of these notes, which stood at ₹3.56 trillion as of the close of business on 19 May 2023, declined to ₹6,266 crore by 30 April 2025. Thus, 98.24 per cent of the ₹2000 banknotes in circulation at the time of the announcement have since been returned, the RBI said in a press release.

 

During the Lok Sabha session in November 2024, Minister of State for Finance Pankaj Chaudhary stated that counterfeit ₹500 notes from the Mahatma Gandhi (new) series had increased to 85,711 pieces in 2023–24, up from 21,865 in 2018–19. Detection of fake ₹2000 denomination notes had risen to 26,035 from 21,847 over the same period. 

 

Despite the spike in ₹500 fakes, the overall number of counterfeit notes detected fell to 2,17,396 pieces in FY25, compared to 2,22,638 in FY24. The RBI report highlighted a continuing downward trend in the detection of counterfeit currency over recent years.