CHAPTER VIII: CURRENCY MANAGEMENT - Revision

RBI Annual Report 2025-26

CHAPTER VIII: CURRENCY MANAGEMENT

PART 1: COMPLETE REVISION NOTE

1. Currency Management, Clean Note Policy and 2025-26 Agenda

Under the Clean Note Policy, RBI continued ensuring adequate supply of clean banknotes and coins, while modernising currency-management infrastructure. It also began R&D for innovation and indigenisation of security features. The Department's 2025-26 agenda covered: modernisation of infrastructure; stronger banknote integrity through new/upgraded security features; new Shredding and Briquetting Systems (SBS); processing-capacity augmentation; and a survey of public payment behaviour.

·  Implementation: stakeholder engagements were held to design the appropriate currency-management architecture; phased rollout of banknotes with new/upgraded security features is expected from mid-2026.

·  Banknote-processing infrastructure: installation of new SBS machines at RBI Issue Offices continued; procurement of new Currency Verification and Processing Systems (CVPS) is underway.

·  Household/payment-behaviour survey covered individuals and small retail sellers. Results showed continued strong preference for cash.

2. Banknotes in Circulation

In 2025-26, value and volume of banknotes in circulation increased by 11.9% and 10.5%, respectively. By volume, ₹500 notes had the highest share, followed by ₹10 notes.

Key banknote data	2025-26 / end-March 2026
Total volume	17,13,215 lakh pieces
Total value	₹41,23,995 crore
₹500 share of volume	41.2%
₹500 share of value	85.5%
₹10 share of volume	16.1%
₹2000 notes: volume	275 lakh pieces
₹2000 notes: value	₹5,501 crore

 

3. Withdrawal of ₹2000 Banknotes

Withdrawal was initiated through the May 19, 2023 press release and continued in 2025-26. By March 31, 2026, 98.45% of the ₹3.56 lakh crore of ₹2000 banknotes in circulation at announcement had returned. Exchange/deposit facility remained available at 19 RBI Issue Offices. ₹2000 notes could also be sent through India Post from any post office to any of the 19 Issue Offices for credit to a bank account.

EXAM ALERT: 98.45% returned + ₹3.56 lakh crore at announcement + 19 Issue Offices are a high-value combination.

4. Coins and e₹

Coin circulation value rose 11.4% and volume 4.5% in 2025-26. As at March 31, 2026, ₹1, ₹2 and ₹5 coins together formed 80.7% of coin volume and 60.2% of coin value. e₹ in circulation stood at ₹771.7 crore, down from ₹1,016.5 crore on March 31, 2025.

Coins in circulation	2026
Total volume	14,32,889 lakh pieces
Total value	₹40,814 crore
₹1+₹2+₹5 share of volume	80.7%
₹1+₹2+₹5 share of value	60.2%
e₹ value in circulation	₹771.7 crore

 

5. Currency Management Infrastructure and Supply

RBI performs currency issuance and management through 19 Issue Offices, 2,599 Currency Chests and 2,119 Small Coin Depots. As at March 31, 2026, SBI had the highest number of Currency Chests and Small Coin Depots.

Institution	Currency Chests	Small Coin Depots
SBI	1,298	1,073
Nationalised Banks	1,053	834
Private Sector Banks	229	196
Cooperative Banks	5	5
Foreign Banks	5	3
RRBs	8	7
RBI	1	1
Total	2,599	2,119

 

For 2025-26, banknote indent was lower than 2024-25, while coin indent was higher. Printing presses supplied banknotes against the indent placed with them.

2025-26 supply/indent	Indent	Supply
Banknotes, total (lakh pieces)	2,81,000	2,81,000
Coins, total (lakh pieces)	21,000	21,000

 

6. Soiled Banknotes and Counterfeit Notes

Disposal of soiled banknotes was lower in 2025-26 due to transient interruptions from replacement of Shredding and Briquetting Systems at RBI Issue Offices.

Indicator	2025-26
Soiled banknotes disposed (lakh pieces)	1,70,237
FICNs detected in banking system	2,29,746 pieces
Detected at RBI	5,412 (2.4%)
Detected at other banks	2,24,334 (97.6%)

 

Counterfeit detection increased from 2,17,396 pieces in 2024-25 to 2,29,746 in 2025-26. Denomination-wise 2025-26 detection: ₹500 = 1,41,907; ₹100 = 45,621; ₹200 = 30,591; ₹50 = 10,274; ₹20 = 373; ₹10 = 133; ₹2000 = 824; ₹1000 = 8; ₹500 specified banknotes = 15; ₹2 and ₹5 = 0.

EXAM ALERT: 97.6% of detected FICNs were detected at other banks, 2.4% at RBI. The table excludes counterfeit notes seized by police/enforcement agencies.

7. Security Printing, Other Initiatives and BRBNMPL

·  Security-printing expenditure: ₹4,875.2 crore in 2025-26 versus ₹6,372.8 crore in the previous year, mainly reflecting reduced banknote indent.

·  Compared with the previous year, counterfeit detections in ₹2000 notes declined, while detections in ₹20 and ₹500 increased by 47.4% and 20.5%, respectively.

·  Indian Currency Microsite launched September 10, 2025, replacing 'Paisa Bolta Hai'. It provides banknote design/security information, 360-degree view, multimedia, interactive games and exchange-facility information.

·  Citizen's Charter: three note-exchange services brought under the Charter, namely notes received through Postal Covers, Triple Lock Receptacles (TLRs), and notes unable to withstand normal handling.

·  Awareness campaigns through print, digital and social media addressed misinformation on coins, increased coin acceptance, and publicised the exchange facility for soiled notes.

·  Safety/hygiene: anti-bacterial and anti-microbial treatments developed in-house were integrated into banknote-paper manufacturing, improving safety and hygiene.

·  BRBNMPL, RBI's wholly owned subsidiary, continued designing, printing and supplying banknotes. Varnished-note print trials were conducted at its Mysuru press. Its Currency Research and Development Centre (CRDC) began collaboration with research institutions for banknote R&D.

8. Agenda for 2026-27 and Conclusion

·  Strengthen banknote integrity through new/upgraded security features.

·  Improve banknote substrate for enhanced durability under Utkarsh 2029.

·  Augment banknote-processing capacity.

·  Continue improving existing Issue Offices and open two new Issue Offices.

Overall priority: adequate clean-currency supply, efficient distribution, public awareness on authenticity/security/proper handling, self-sufficiency and indigenisation, longer banknote lifespan, stronger security/integrity and improved quality of currency in circulation.

PART 2: IMPORTANT NUMBERS

Topic	Figure	Meaning
Banknotes, value growth	11.9%	2025-26
Banknotes, volume growth	10.5%	2025-26
Banknotes total volume	17,13,215 lakh	End-March 2026
Banknotes total value	₹41,23,995 crore	End-March 2026
₹500 volume share	41.2%	Highest denomination share by volume
₹500 value share	85.5%	Highest denomination share by value
₹2000 returned	98.45%	Of ₹3.56 lakh crore at withdrawal announcement, by Mar 31 2026
₹2000 exchange/deposit	19 Issue Offices	Facility available
Coin value growth	11.4%	2025-26
Coin volume growth	4.5%	2025-26
₹1+₹2+₹5 coin volume share	80.7%	End-March 2026
₹1+₹2+₹5 coin value share	60.2%	End-March 2026
e₹ in circulation	₹771.7 crore	Mar 31 2026, vs ₹1,016.5 crore in 2025
Issue Offices	19	RBI currency management
Currency Chests	2,599	End-March 2026
Small Coin Depots	2,119	End-March 2026
FICNs detected at RBI	5,412 / 2.4%	2025-26
FICNs detected at other banks	2,24,334 / 97.6%	2025-26
Soiled notes disposed	1,70,237 lakh	2025-26
Security-printing expenditure	₹4,875.2 crore	2025-26
Banknote indent	2,81,000 lakh	2025-26
Coin indent	21,000 lakh	2025-26

 

PART 3: IMPORTANT DATES

Date/Year	Event
May 19, 2023	Withdrawal of ₹2000 denomination banknotes initiated
September 10, 2025	Indian Currency Microsite launched, replacing 'Paisa Bolta Hai'
March 31, 2026	Reference date for circulation, infrastructure and e₹ figures
Mid-2026	Expected start of phased rollout of banknotes with new/upgraded security features
2025-26	CVPS procurement underway; new SBS machines being installed
2026-27	Utkarsh 2029 substrate-durability work, processing-capacity augmentation, Issue Office improvements and two new Issue Offices

 

PART 4: IMPORTANT RBI / GOI / OTHER INITIATIVES

Initiative	Organisation	One-line purpose/key fact
Clean Note Policy	RBI	Ensure adequate supply of clean banknotes and coins
Currency-management modernisation	RBI	Upgrade architecture, processing and distribution infrastructure
New/upgraded security features	RBI	Strengthen integrity of Indian banknotes; phased rollout expected from mid-2026
SBS	RBI	Shredding and Briquetting Systems for processing/disposal of banknotes
CVPS	RBI	Augment cash-processing infrastructure; procurement underway
Indian Currency Microsite	RBI	Public information on design, security features and note exchange; launched Sep 10, 2025
Citizen's Charter revision	RBI	Three note-exchange services brought under Charter
Awareness campaigns	RBI	Counter misinformation on coins and explain soiled-note exchange
Anti-bacterial/anti-microbial treatment	RBI	Improve banknote safety and hygiene
Utkarsh 2029	RBI	Improve banknote substrate for enhanced durability
BRBNMPL / CRDC	RBI subsidiary	Banknote design/printing/supply and R&D collaboration

 

PART 5: KEY DEFINITIONS / CONCEPTS

Term	Meaning
Clean Note Policy	RBI policy focus on ensuring clean banknotes and coins for the economy
Currency Chest	Facility forming part of the currency distribution infrastructure for holding/distributing banknotes
Small Coin Depot	Facility for holding/distributing small coins
SBS	Shredding and Briquetting Systems used in banknote processing/disposal
CVPS	Currency Verification and Processing Systems
FICN	Fake Indian Currency Note
BRBNMPL	Bharatiya Reserve Bank Note Mudran Private Ltd., wholly owned RBI subsidiary involved in banknote design, printing and supply
CRDC	Currency Research and Development Centre under BRBNMPL
TLR	Triple Lock Receptacle, one of the note-exchange services brought under Citizen's Charter
Utkarsh 2029	Initiative cited for improving banknote substrate and durability
e₹	Electronic rupee; value in circulation is reported separately from physical currency

 

PART 6: CONFUSION POINTS

Confusion	Correct distinction
11.9% vs 10.5%	Banknotes: 11.9% value growth, 10.5% volume growth
11.4% vs 4.5%	Coins: 11.4% value growth, 4.5% volume growth
41.2% vs 85.5%	₹500: 41.2% of banknote volume, 85.5% of banknote value
80.7% vs 60.2%	₹1+₹2+₹5 coins: 80.7% of volume, 60.2% of value
₹771.7 crore vs ₹1,016.5 crore	e₹ circulation at Mar 31, 2026 vs Mar 31, 2025
98.45% vs ₹3.56 lakh crore	98.45% is returned share; ₹3.56 lakh crore was ₹2000 circulation at announcement
2.4% vs 97.6%	FICNs detected at RBI vs other banks
19 vs 2,599 vs 2,119	Issue Offices vs Currency Chests vs Small Coin Depots
Banknote vs coin indent	2025-26 banknote indent lower than 2024-25; coin indent higher
₹20 and ₹500 counterfeit change	Detections increased 47.4% and 20.5%, respectively; ₹2000 detections declined
2025-26 vs 2026-27	2025-26 = implementation/developments; 2026-27 = future agenda/priorities
BRBNMPL vs CRDC	BRBNMPL handles design/printing/supply; CRDC under BRBNMPL focuses on banknote R&D collaboration

 

PART 7: LAST-MINUTE EXAM FACTS

·  Clean Note Policy remains central to RBI's currency-management objective.

·  RBI operates currency management through 19 Issue Offices, 2,599 Currency Chests and 2,119 Small Coin Depots.

·  2025-26 banknote value and volume rose 11.9% and 10.5%.

·  Total banknotes at end-March 2026: 17,13,215 lakh pieces worth ₹41,23,995 crore.

·  ₹500 had the highest volume share at 41.2% and value share at 85.5%.

·  98.45% of ₹2000 notes amounting to ₹3.56 lakh crore at announcement had returned by March 31, 2026.

·  ₹2000 exchange/deposit facility was available at 19 RBI Issue Offices; India Post route was also available.

·  Coin value and volume rose 11.4% and 4.5%.

·  ₹1, ₹2 and ₹5 coins together: 80.7% of volume and 60.2% of value.

·  e₹ in circulation: ₹771.7 crore on March 31, 2026.

·  SBI had the highest number of Currency Chests and Small Coin Depots: 1,298 and 1,073.

·  2025-26 banknote indent/supply: 2,81,000 lakh pieces each; coin indent/supply: 21,000 lakh each.

·  Soiled banknote disposal: 1,70,237 lakh pieces in 2025-26.

·  Total FICNs detected in banking system: 2,29,746 pieces; 2.4% at RBI and 97.6% at other banks.

·  Security-printing expenditure fell to ₹4,875.2 crore from ₹6,372.8 crore.

·  ₹20 and ₹500 counterfeit detections increased 47.4% and 20.5%; ₹2000 detections declined.

·  Indian Currency Microsite launched September 10, 2025, replacing 'Paisa Bolta Hai'.

·  Three note-exchange services were brought under the Citizen's Charter.

·  Anti-bacterial and anti-microbial treatments were integrated into banknote-paper manufacturing.

·  BRBNMPL is RBI's wholly owned subsidiary for banknote design, printing and supply.

·  Varnished-note print trials were conducted at BRBNMPL's Mysuru press.

·  CRDC under BRBNMPL initiated collaboration with research institutions for banknote R&D.

·  Utkarsh 2029 focuses on improved banknote substrate and enhanced durability.

·  2026-27 agenda includes new security features, substrate improvement, processing-capacity augmentation and two new Issue Offices.

·  Core forward priorities: clean-currency supply, indigenisation, longer lifespan, security/integrity and banknote quality.