The financial outlay for security printing surged by almost 25 per cent in the fiscal year 2024-25, reaching Rs 6,372.8 crore, compared to Rs 5,101.4 crore the previous year. This increase was primarily driven by a heightened demand for banknote printing, as detailed in the Reserve Bank of India's (RBI) annual report released on May 29.
During the same period, both the value and number of banknotes in circulation saw an uptick of 6 per cent and 5.6 per cent, respectively. According to the RBI's report for 2024-25, the proportion of Rs 500 banknotes, which accounted for 86 per cent, experienced a slight decline in value terms. In terms of volume, Rs 500 banknotes represented the largest segment at 40.9 per cent of total banknotes in circulation, followed by Rs 10 banknotes at 16.4 per cent. Collectively, the lower denomination banknotes (Rs 10, Rs 20, and Rs 50) made up 31.7 per cent of the total banknotes circulated by volume.
The process of withdrawing Rs 2000 banknotes from circulation, which began in May 2023, persisted throughout the year, with approximately 98.2 per cent of the Rs 3.56 lakh crore in circulation at the time of the announcement having returned to the banking system by March 31, 2025. The report also highlighted that the value and volume of coins in circulation rose by 9.6 per cent and 3.6 per cent, respectively, during the fiscal year.
Additionally, the e-rupee's value in circulation experienced a remarkable increase of 334 per cent in 2024-25. Currency in circulation encompasses banknotes, central bank digital currency (CBDC), and coins. Currently, the banknotes in circulation include denominations of Rs 2, Rs 5, Rs 10, Rs 20, Rs 50, Rs 100, Rs 200, Rs 500, and Rs 2000. However, the Reserve Bank has ceased printing Rs 2, Rs 5, and Rs 2000 denominations. The coin denominations in circulation consist of 50 paise, Re 1, Rs 2, Rs ..
Concerning counterfeit currency, the report indicated that in the year 2024-25, 4.7 per cent of the total Fake Indian Currency Notes (FICNs) identified in the banking sector were detected by the Reserve Bank. Notably, the detection of counterfeit notes in denominations of Rs 10, Rs 20, Rs 50, Rs 100, and Rs 2000 decreased during the fiscal year, whereas the counterfeit notes in Rs 200 and Rs 500 denominations saw increases of 13.9 per cent and 37.3 per cent, respectively, compared to the previou ..
The RBI said that it is actively advancing the implementation of new and upgraded security features for banknotes. It has also been committed to promoting the indigenization of banknote production to lessen reliance on foreign suppliers. "Through ongoing efforts, all primary raw materials required for banknote production, including banknote paper, various inks (offset, numbering, intaglio, and color-shifting intaglio ink), and other security features, are now being sourced domestically," the rep ..
Looking ahead, the RBI emphasised that maintaining self-sufficiency in banknote production, as well as conducting analytical and developmental research on currency, will be crucial for enhancing the durability and integrity of banknotes.
Understanding the trends in public preference for cash versus alternative payment methods will also remain a significant area of focus, it said.
Source Name : Economic Times