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<p data-start="168" data-end="476"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">The Reserve Bank of India has reported a significant increase in counterfeit ₹500 notes in the current financial year. RBI Governor Sanjay Malhotra informed the Parliamentary Standing Committee on Finance that 1.12 lakh fake ₹500 notes were detected in FY25, marking a 37 percent jump over the previous year.</span></p>
<p data-start="478" data-end="746"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">This figure is the highest since the ₹500 note was reintroduced in 2016 following demonetisation. While the overall number of fake notes fell slightly to 2.18 lakh from 2.23 lakh in FY24, the spike in high-denomination forgeries is raising concerns among policymakers.</span></p>
<p data-start="748" data-end="962"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">Other denominations also showed substantial numbers. Over 51,000 fake ₹100 notes were found, along with more than 32,000 fake ₹200 notes and over 3,500 counterfeit ₹2,000 notes, despite the latter being phased out.</span></p>
<p data-start="964" data-end="1264"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">The increase in counterfeit high-value currency comes at a time when household credit and cash-based transactions remain high. Lawmakers on the panel questioned the effectiveness of counterfeit detection at rural bank branches and urged the RBI to strengthen public awareness and training mechanisms.</span></p>
<p data-start="1266" data-end="1465"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">In response, the RBI has directed banks to improve detection infrastructure and staff preparedness. Officials say better coordination with enforcement agencies will be critical to curbing this trend.</span></p>
<p data-start="1467" data-end="1749" data-is-last-node="" data-is-only-node=""><span style="font-family: georgia, palatino, serif; font-size: 12pt;">The ₹500 note is now the most common high-value currency in circulation, making it an attractive target for counterfeiters. As digital payments rise, the RBI is under pressure to protect the credibility of physical currency through stronger oversight and updated security protocols.</span><br><br><span style="font-family: georgia, palatino, serif; font-size: 12pt;">[Except for the headline, this article has not been edited by the Benefit News editorial team and is published directly from the IANS news feed]</span></p>
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Significant increase in counterfeit ₹500 notes

RBI flags rise in fake ₹500 notes, urges banks to strengthen detection as fraud cases climb in FY25

Fake ₹500 Notes Surge to 1.12 Lakh in FY25: RBI

RBI flags rise in fake ₹500 notes, urges banks to strengthen detection as fraud cases climb in FY25

July 11, 2025 | 21:19 IST