RBI's Note Printing Costs Increase by 24.9% in FY25 to Rs. 6,372 Crore

Mumbai, May 29 – The Reserve Bank of India’s Annual Report for 2024-25 highlights a sharp 24.9% increase in security printing costs, which rose from ₹5,101.4 crore to ₹6,372.8 crore. This surge was mainly driven by increased demand for banknotes during the year.

Currency Circulation Expands

Both the value and volume of banknotes in circulation increased steadily, with value rising by 6% and volume increasing by 5.6% in FY25. The ₹500 denomination remains dominant, accounting for 86% of the total value of notes in circulation—a slight decline from previous levels. By volume, ₹500 notes are the most circulated, accounting for 40.9%, followed by ₹10 notes at 16.4%. The lower denominations of ₹10, ₹20, and ₹50 collectively account for 31.7% of the total volume.

Withdrawal of ₹2,000 Notes Nears Completion

The RBI’s ₹2,000 note withdrawal, started in May 2023, has seen strong participation. As of March 31, 2025, 98.2% of the ₹3.56 lakh crore initially issued has been returned to banks.

Rise in Coins and Digital Currency

Coin circulation increased by 9.6% in value and 3.6% in volume. India’s central bank digital currency, the e-rupee, recorded a remarkable 334% jump in circulation value during FY25.

The current currency system includes banknotes of ₹2, ₹5, ₹10, ₹20, ₹50, ₹100, ₹200, ₹500, and the discontinued ₹2,000, while coins range from 50 paise to ₹20.

Counterfeit Note Trends

RBI detected 4.7% of all fake Indian currency notes in FY25. Counterfeit notes declined in ₹10, ₹20, ₹50, ₹100, and ₹2,000 denominations but rose for ₹200 and ₹500 notes by 13.9% and 37.3%, respectively.

Focus on Domestic Production and Security

The RBI emphasized progress in indigenizing banknote manufacturing, sourcing all key raw materials domestically. It cont͏inues to enhance͏ s͏e͏c͏u͏rity features ͏to dete͏r counter͏feiting a͏nd͏ ͏imp͏rove note du͏rabili͏ty.

Looking ahead, the RBI plans to deepen self-reliance in banknote production, invest in currency research, and monitor trends in cash versus digital payments.

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