RBI News Today - How much does RBI spend to print currency notes, told the truth itself

News, Digital Desk- The cost of printing notes for the Reserve Bank of India is continuously increasing. In the financial year 2024-25, this expenditure has increased by about 25 percent on an annual basis to Rs 6,372.8 crore, whereas in the financial year 2023-24 it was Rs 5,101.4 crore. This increase is posing a significant financial challenge for the RBI.

The maximum expenditure was made on this note-

According to the Reserve Bank of India's 2024-25 annual report, the value of bank notes in circulation increased by six percent and the quantity by 5.6 percent in the financial year 2024-25. The report said that the share of Rs 500 notes stood at 86 percent in terms of value, which has decreased marginally.

It said that in terms of quantity, the share of Rs 500 denomination notes in the total bank notes in circulation was the highest at 40.9 percent. After this, the share of Rs 10 denomination notes was 16.4 percent. The share of low denomination bank notes (Rs 10, Rs 20 and Rs 50) in the total bank notes in circulation was 31.7 percent.

Update on 2000 rupee note-

Withdrawal of Rs 2000 notes from circulation began in May 2023, and 98.2% of the Rs 3.56 lakh crore in circulation as of 31 March 2025 returned to the banking system. 

The value and volume of coins increased by 9.6% and 3.6% respectively during 2024-25. In the same period, the value of e-rupee increased by 334 percent, reflecting the increasing use of digital currency.

The currency in circulation includes banknotes, central bank digital currency (CBDC) and coins. Currently, notes in denominations of Rs 2, Rs 5, Rs 10, Rs 20, Rs 50, Rs 100, Rs 200, Rs 500 and Rs 2000 are in circulation. The Reserve Bank is no longer printing banknotes in denominations of Rs 2, Rs 5 and Rs 2000.

How many coins are there in the market?

Talking about coins, coins of 50 paise and one rupee, two rupees, five rupees, 10 rupees and 20 rupees denomination are present in circulation. 

Regarding counterfeit notes, the report said that out of the total Fake Indian Currency Notes (FICN) seized in the banking sector during 2024-25, 4.7 percent were caught in the Reserve Bank.

There was a decline in counterfeit notes of Rs 10, Rs 20, Rs 50, Rs 100 and Rs 2000 denominations during FY 2024-25. However, counterfeit notes of Rs 200 and Rs 500 witnessed an increase of 13.9% and 37.3% respectively. 

The Reserve Bank of India is actively working on implementing new/advanced security features for banknotes and promoting indigenisation in the printing of banknotes to reduce dependence on foreign sources.

All the main raw materials used for printing banknotes in India, such as paper, various types of inks (offset, numbering, intaglio, and colour-shifting inks), and all other security materials are now being manufactured indigenously.