Detection of counterfeit currency notes in the banking system rose 5.7% in 2025-26, led by a sharp increase in fakes found in ₹500 and ₹200 denominations, the RBI said on Friday (May 29, 2026).

The total number of counterfeit notes detected increased to 2,29,746 pieces in 2025-26, up from 2,17,396 in the preceding financial year, RBI said in its annual report.

Fake ₹500 notes remained the most detected denomination, rising 20.5% to 1,41,907 pieces during the year from 1,17,722 in 2024-25.

Counterfeit ₹20 notes registered one of the sharpest increases, jumping 47.4% to 373 pieces from 253 a year ago.

Besides, fake ₹200 denomination notes fell to 30,591 pieces in 2025-26 from 32,660 in the previous year, while counterfeit ₹100 notes declined to 45,621 from 51,069. Detection of fake ₹50 notes also fell to 10,274 pieces from 12,015.

Counterfeit ₹2,000 notes continued to decline sharply amid the withdrawal of the denomination from circulation, dropping to 824 pieces in 2025-26 from 3,508 in the previous year.

The RBI said 97.6% of the counterfeit notes, or 2,24,334 pieces, were detected at other banks, while the central bank detected 5,412 notes, accounting for 2.4% of the total. The figures exclude counterfeit notes seized by police and other enforcement agencies.

Further, the central bank said disposal of soiled banknotes declined sharply in 2025-26, with 1.72 lakh pieces, compared with 2.38 lakh pieces in the previous financial year, a decline of about 28.6%.

Among denominations, disposal of ₹500 notes remained the highest at 59.8 lakh pieces during 2025-26, down from 89.8 lakh pieces a year ago.

Disposal of ₹20 notes fell to 9.8 lakh pieces from 16.50 lakh pieces, while ₹100 notes were largely steady at 58.1 lakh pieces.