RBI Reports Surge in Counterfeit Currency Detection: What You Need to Know

Counterfeit Currency Detection on the Rise

Mumbai: The Reserve Bank of India (RBI) has reported a 5.7% increase in the detection of counterfeit currency notes for the fiscal year 2025-26, primarily driven by a notable rise in fake Rs 500 and Rs 200 notes.

The total counterfeit notes identified reached 229,746, an increase from 217,396 in the previous year, according to the RBI's annual report.

Among these, fake Rs 500 notes were the most frequently detected, with a 20.5% rise to 141,907 pieces, up from 117,722 in 2024-25.

Notably, counterfeit Rs 20 notes saw a significant spike, increasing by 47.4% to 373 pieces from 253 the previous year.

In contrast, the detection of fake Rs 200 notes decreased to 30,591 from 32,660, while counterfeit Rs 100 notes dropped to 45,621 from 51,069. Similarly, fake Rs 50 notes fell to 10,274 from 12,015.

The number of counterfeit Rs 2,000 notes also saw a sharp decline, plummeting to 824 pieces from 3,508 as this denomination is being phased out.

The RBI noted that 97.6% of the counterfeit notes, totaling 224,334 pieces, were identified by other banks, while the central bank itself detected 5,412 notes, representing 2.4% of the total. These figures do not include counterfeit notes confiscated by law enforcement agencies.

Additionally, the disposal of worn-out banknotes significantly decreased in 2025-26, with 172,000 pieces disposed of compared to 238,000 in the previous year, marking a decline of approximately 28.6%.

Among the denominations, the disposal of Rs 500 notes was the highest at 5.98 million pieces, down from 8.98 million the previous year.

Disposal of Rs 20 notes also fell to 980,000 from 1.65 million, while Rs 100 notes remained relatively stable at 5.81 million pieces.