RBI Data Shows 11% Rise in Rs 500 Note Volumes in FY26, Fake Notes Detection Up 20%.

Reserve Bank of India's Annual Report 2025-26 Reveals Trends in India's Currency Ecosystem

The Reserve Bank of India's Annual Report 2025-26 has provided insights into the trends in India's currency ecosystem, with a significant increase in the volume of Rs 500 denomination banknotes in circulation. According to the report, the volume of Rs 500 notes increased by 11.2 per cent in FY26, reaching 7,05,482 lakh pieces at end-March 2026, up from 6,34,458 lakh pieces a year ago.

In value terms, the Rs 500 notes in circulation increased to Rs 35.27 lakh crore in FY26, from Rs 31.72 lakh crore in FY25. The dominance of Rs 500 denomination notes in India's currency ecosystem was further reinforced, with these notes constituting the highest share of total banknotes in circulation in volume terms at 41.2 per cent, followed by Rs 10 denomination notes at 16.1 per cent at end-March 2026.

A closer look at the value perspective reveals that the Rs 500 denomination notes outstanding form over 86 per cent of the currency in circulation. This trend indicates the sustained demand for cash in the economy, with the value and volume of banknotes in circulation increasing 11.9 per cent and 10.5 per cent, respectively, during FY26.

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The Reserve Bank of India also noted that the withdrawal of Rs 2,000 denomination notes from circulation, initiated in May 2023, continued during the year. As of March 31, 2026, 98.45 per cent of the Rs 3.56 lakh crore worth of Rs 2,000 notes in circulation at the time of the announcement had been returned.

The total value as well as volume of coins in circulation increased 11.4 per cent and 4.5 per cent, respectively, during 2025-26, the RBI annual report showed. As on March 31, 2026, coins of Re 1, Rs 2, and Rs 5 together constituted 80.7 per cent of the total volume of coins in circulation, while in value terms, these denominations accounted for 60.2 per cent.

The indent of banknotes for 2025-26 was lower than 2024-25, whereas the indent of coins for 2025-26 was higher than the previous year. According to RBI data, the total indent and supply of banknotes by BRBNMPL and SPMCIL stood at 2.81 lakh pieces in 2025-26, lower than 3.03 lakh pieces in FY25.

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The decline was led by reduced demand for high-value notes, with the indent for Rs 500 notes easing to 1.1 lakh pieces from 1.2 lakh pieces a year ago, while printing of Rs 200 notes dropped sharply to 15,000 pieces from 40,000 pieces. However, production of Rs 10 notes rose significantly to 46,000 pieces from 18,000 pieces, reflecting increased demand for lower denomination currency.

The lower indent also led to a reduction in the overall money spent on printing at Rs 4,875 crore in FY26 from Rs 6,379 crore in the year-ago period.