Even in this era of digital payments and UPI, the craze for cash in the Indian markets is showing no sign of abating. The Reserve Bank of India (RBI) has made many big and shocking revelations regarding the country’s currency in its latest annual report. According to the report, the dominance of ₹500 notes in the market has increased more than ever, but along with it a scary news has also come. There has been a huge jump of more than 20 percent in the number of fake ₹500 notes detected in the banking system this year.
According to the RBI report, an increase of 11.2 percent has been recorded in the number of ₹ 500 notes in the financial year 2025-26. By the end of March 2026, the number of ₹500 notes in the market has increased to 7,05,482 lakh pieces, which was 6,34,458 lakh pieces last year. If we look at it from the total value perspective, the share of ₹500 notes alone in the total currency present in the market is more than 86 percent. In terms of total number of notes, it remains at the first place with a share of 41.2%, followed by ₹10 notes (16.1%) in second place.
Increase in problem of fake notes and update of ₹2,000 note
The biggest concern amid this huge circulation is the rise in fake ₹500 notes. The central bank has cautioned that seizures of fake ₹500 notes have seen an increase of more than 20% during this financial year. In such a situation, the general public needs to be extremely careful while doing transactions. Apart from this, the process of withdrawal of ₹2,000 notes which started in May 2023 is also in its final stages. Of the ₹2,000 notes worth ₹3.56 lakh crore present in the market as of March 31, 2026, 98.45 per cent have been successfully returned to banks.
How to identify real and fake ₹500 notes?
According to RBI, the genuine ₹500 note has many security features. It includes Mahatma Gandhi’s image, security thread, color changing ink, watermark and embossed printing. If the color, print or paper of the note feels different then you should be cautious.
Demand for coins increases, huge reduction in cost of printing notes
Interesting figures regarding coins have also emerged in the RBI report. The total value of coins in the market has increased by 11.4% and the number has increased by 4.5% during the financial year 2025-26. ₹1, ₹2 and ₹5 coins dominate the coin market the most (about 80.7%).
SK Sharma is a content writer who writes on news, entertainment, and lifestyle topics. She has over four years of experience and is known for conveying information in simple and clear language.
