Viral posts on social media recently claimed that the Reserve Bank of India (RBI) will stop dispensing ₹500 notes from ATMs by March 2026 and may even discontinue the denomination altogether.
The rumours caused widespread confusion, prompting the government to step in with a firm denial. Officials clarified that ₹500 notes remain valid and available and that there are no plans to withdraw or ban them.
Fact-Check: ₹500 Notes Stop Dispensing by March 2026?
Online messages and videos on platforms like WhatsApp and YouTube had suggested that the RBI would phase out ₹500 notes. They claimed banks would stop ATM disbursements of this widely used denomination by March 2026, leaving only ₹100 and ₹200 notes in circulation. The posts also reported a supposed RBI directive on limiting ₹500 notes.
However, the Press Information Bureau (PIB) swiftly rejected these claims. Its fact-check unit said that the central bank has made no such announcement. The agency labelled the speculation as fake information and urged people not to believe or share it.
RBI Has Made No Announcement on ₹500 Notes
In its official clarification, the government confirmed that the RBI has not issued any order to stop providing ₹500 notes from ATMs or to cease the print and circulation of this denomination. The notes continue to be legal tender for all transactions in the country.
The government also highlighted that previous rumours about discontinuing ₹500 notes had appeared multiple times in the past and were repeatedly debunked. In each case, authorities stressed that the RBI had not announced any plan to withdraw the notes or discontinue their use.
Why the Confusion Happened?
Part of the confusion comes from an RBI guideline aimed at improving the availability of smaller denomination notes like ₹100 and ₹200 in ATMs. The central bank had issued a circular to banks and White Label ATM Operators requiring a certain percentage of ATMs to carry smaller notes regularly. This move was meant to make smaller cash denominations easier to access, not to remove ₹500 notes from ATMs.
The directive set targets for the proportion of ATMs carrying ₹100 and ₹200 notes by certain dates, but it did not mention stopping ₹500 disbursements.
Legal Tender and Everyday Use
The ₹500 currency note remains fully valid and widely accepted across India. Banks, businesses, and ATMs will continue to handle this denomination like any other. Citizens are free to use, deposit, and withdraw ₹500 notes without worry.
Earlier, when similar rumours circulated, the Minister of State for Finance also confirmed in Parliament that no proposal exists to stop the supply or use of ₹500 notes and that they would continue to be dispensed by ATMs alongside ₹100 and ₹200 notes.
Why You Should Verify Financial News?
Government agencies stress that misinformation about currency can cause unnecessary fear and panic. False claims can spread rapidly on social media, especially around topics like demonetisation or ATM withdrawals. Officials urge the public to always check such information against verified sources, such as RBI releases, official government statements, or recognised news outlets.
Misinformation about currency often resurfaces, but clarification by official bodies like the Press Information Bureau helps stop the spread of false narratives and reassure the public about the stability of India’s cash system.
