Rs 500 fakes are rising. Are plastic notes the solution?

Team TOI PlusTIMESOFINDIA.COM
Jun 2, 2026 | 20:18 IST
Image: AI

And not just fakes, the RBI destroyed 1.7 lakh currency notes that were damaged or soiled beyond use in 2025. Plastic notes – that last longer and are much more difficult to create fakes of – may be the solution

The amount of cash in the Indian economy has risen every year since 2018. Every year, India’s central bank has to dispose of nearly 2 lakh currency notes that are too damaged to be used, most of them of high value denominations. And every year, the number of counterfeit notes detected is nearly 2 lakh, with a rising number of fake Rs 500 notes.

Several countries have switched to plastic polymer notes. The Reserve Bank of India mooted the idea in 2007, but despite a pilot project being planned in five cities, the project went nowhere.
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