Fake ₹500 notes rise 20%: Do you these 18 RBI security features to identify a genuine banknote

Counterfeit ₹500 notes detected in the banking system rose 20.5% in FY26, according to the Reserve Bank of India's Annual Report 2025-26.

RBI data shows fake ₹500 notes detected by banks and the central bank increased to 1.42 lakh pieces during FY26 from 1.18 lakh pieces a year earlier. At the same time, ₹500 notes in circulation grew 11.2% to more than 7 lakh pieces, making them the most widely used banknote in the country.

The ₹500 denomination now accounts for over 41% of all banknotes in circulation by volume and more than 86% of the total value of currency in circulation.

While RBI lists several security features to help people identify genuine notes, consumers can quickly verify a ₹500 note using these simple checks listed below:

Check the colour-changing security thread

The windowed security thread carries inscriptions such as "RBI" and "Bharat" (written in Hindi). It changes colour from green to blue when the note is tilted.

Look for the watermark

Hold the note against light to see the Mahatma Gandhi watermark and the electrotype "500" mark.

Verify the see-through register

A partial "500" printed on the front and back aligns perfectly when viewed against light.

1. See-through register

2. Latent image of denomination (500)

3. Denomination in Devanagari

4. Mahatma Gandhi portrait orientation & position

5. Micro letters (“Bharat" and " India")

6. Windowed security thread (green to blue colour shift)

7. Guarantee clause plus RBI Governor's signature

8. Mahatma Gandhi watermark and electrotype “500”

9. Number panel with ascending numerals

10. Colour-changing ₹ symbol and 500 numeral

11. Ashoka Pillar emblem

12. Intaglio (raised printing for tactile feel)

13. Identification mark plus bleed lines (for visually impaired)

14. Year of printing

15. Swachh Bharat logo with slogan

16. Language panel

17. Reverse: Red Fort motif

18. Denomination in Devanagari on reverse side

The central bank said overall counterfeit note detections increased 5.7% during FY26, with ₹500 notes remaining the most commonly detected fake denomination. RBI advises people to examine key security features carefully whenever they receive cash, particularly high-value notes.

Counterfeit ₹20 notes registered one of the sharpest increases, jumping 47.4 per cent 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 Rs 100 notes declined to 45,621 from 51,069. Detection of fake ₹50 notes also fell to 10,274 pieces from 12,015.

The central bank also noted that the withdrawal of ₹ 2,000 denomination notes from circulation, initiated in May 2023, continued during the year. As of March 31, 2026, 98.45 per cent of the ₹3.56 lakh crore worth of ₹2,000 notes in circulation at the time of the announcement had been returned.