Rs 2,000 denomination fake currency notes dip, but Rs 500 counterfeit notes spike in FY25

Chennai: Dip in Rs 2,000 denomination counterfeit notes contributed to the reduction in the value of fake banknotes detected by banks and Reserve Bank, but there was a rise in Rs 500 Fake Indian Currency Notes (FICN) during FY25, RBI data showed. Banknotes of Rs 2,000 denomination were withdrawn from circulation in May 2023, though it continues to be legal tender.

The counterfeit notes detected in the denominations of Rs 10, Rs 20, Rs 50, Rs 100 and Rs 2,000 declined in 2024-25, while those in Rs 200 and Rs 500 denominations increased by 13.9% and 37.3%, respectively, when compared with the previous year (FY24). A total number of 2,17,396 FICNs was detected by banks and Reserve Bank in FY25, recording a marginal drop by 2.3% in FY24 at 2,22,639 FICNs. However, it does not include counterfeit notes seized by the police and other enforcement agencies, India's central bank said in its annual report for 2024-25.

According to data, Rs 500 FICNs increased from 85,722 in FY24 to 1,17,727 in FY25. Its value rose from around Rs 4.3 crore to Rs 5.9 crore, respectively. Subsequently, the number of Rs 2,000 denomination counterfeit notes plunged by 86.5% YoY at 3,508 in FY25 from 26,035 in FY24. Its value decreased to Rs 70 lakh in FY25 from Rs 5.2 crore in FY24. Further, 32,660 numbers of Rs 200 FICNs and 51,069 in the Rs 100 denomination were detected in the last fiscal (FY25). Out of the total FICNs detected in the banking sector in 2024-25, 95.3% was detected by banks and the rest 4.7% was detected at the Reserve Bank.

The report said, a Currency Research and Development Centre (CRDC) has been set up under the administrative control of Bharatiya Reserve Bank Note Mudran (BRBNMPL) for conducting advanced testing of security features of Indian banknotes, counterfeit deterrence tests, forensic/scientific analysis of forged notes, ethical counterfeiting of notes by using latest available tools and technologies and for the development of security/design features for Indian banknotes.

Former president of Bank Employees Federation of India C J Nandakumar said, the rise in Rs 500 FICNs indicates the circulation of counterfeit notes. “Criminals have become sophisticated in designing fake notes with features that even escape from being identified by sorting machines. Apart from issuing guidelines, the regulator must also initiate more stringent actions and supervise to end the menace of FICNs,” he added.



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