But the ₹500 note is quietly losing ground.
There’s no announcement. No chaos.
But the RBI just asked banks to stock more ₹100 and ₹200 notes in ATMs.
And by March 2026,
90% of all ATMs must compulsorily dispense small denominations.
The ₹500 isn’t being demonetised. It’s just being… sidelined.
And this shift says a lot about what India wants from its cash economy.
See, the ₹500 note accounts for over 86% of all currency value in circulation.
But it’s also the most counterfeited note in the country.
In FY24, fake ₹500s rose by 37%.
The biggest jump among all denominations.
For policymakers, that’s a red flag.
If someone wants to stash ₹10 lakhs in unaccounted cash,
that’s just 2,000 notes.
But if you force them to do it in ₹100s?
That’s 10,000 notes. And a lot more risk.
This also nudges everyday users toward digital payments.
Smaller notes are harder to count, carry and store.
And that friction is deliberate.
But it comes with costs.
More printing. More wear and tear.
More ATM refills, more logistics.
The RBI’s printing bill alone rose by 25% in a year.
The message is subtle but clear:
Big notes are convenience.
Small notes are control.
And when the state wants more traceability, small notes are the nudge.
We broke this down in today’s Finshots.
Link under my profile.
What do you think — should India continue this silent push away from high-value currency? Let me know in the comments.
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