A Detailed Look at India's Banknote Dynamics in 2024-25

The Reserve Bank of India's recent annual report highlights a significant 25% increase in security printing expenditure for the fiscal year 2024-25, reaching Rs 6,372.8 crore. This rise is attributed to a higher demand for banknotes, particularly in the Rs 500 denomination which holds 86% of the total value in circulation.

The volume of banknotes in circulation also showed a notable increase, with Rs 500 and Rs 10 denominations making up substantial shares. Meanwhile, the gradual withdrawal of Rs 2000 banknotes, initiated in May 2023, resulted in a 98.2% return of these notes to the banking system by March 31, 2025.

In a digital twist, the value of e-rupee currency in circulation witnessed a dramatic 334% growth. A focus on indigenization ensures that all primary materials for banknote production, such as paper and inks, are sourced domestically, reducing foreign dependency and enhancing security features.

(With inputs from agencies.)