Rs 500 Notes Surge by 11% in FY26 as Counterfeits Rise 20%

The circulation of Rs 500 denomination notes in India increased by 11.2% in FY26, reaching 705,482 lakh pieces, even as counterfeit detection rose by over 20%. The Reserve Bank of India's report highlights that Rs 500 notes make up the largest share of banknotes in circulation.

According to the Reserve Bank of India's Annual Report for 2025-26, Rs 500 denomination banknotes saw a notable 11.2% increase in circulation, consolidating their role in India's currency landscape. By the end of March 2026, the quantity of these notes climbed to 705,482 lakh pieces, up from 634,458 lakh pieces the previous year.

The value of Rs 500 notes in circulation surged to Rs 35.27 lakh crore, compared to Rs 31.72 lakh crore in FY25. However, the frequency of counterfeit Rs 500 notes rose by more than 20% during this period. The RBI report underscored that these notes represented the most significant portion, 41.2%, of total banknotes in circulation, with Rs 10 notes trailing at 16.1% by volume at the fiscal year's close.

In value terms, Rs 500 notes accounted for an overwhelming 86% of circulated currency. Overall, both the value and volume of banknotes saw an increase of 11.9% and 10.5%, respectively, mirroring ongoing cash demand in the economy. Concurrently, the ongoing withdrawal of Rs 2,000 notes initiated in May 2023 led to 98.45% of these notes being returned by March 31, 2026.

Additionally, while banknote printing costs decreased to Rs 4,875 crore due to lower indents compared to the previous fiscal year, the minting of coins grew, with Re 1, Rs 2, and Rs 5 coins comprising a significant share of circulation, both in volume and value.