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Are Rs 500 Notes Being Discontinued? Fact-Checking Viral Claim

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Social media platforms are buzzing with speculations that ₹500 currency notes will be phased out by March 2026. The rumour, sparked by a YouTube video and a tweet, has led to confusion and concern among the masses. However, no such announcement has been made as of now.
The fact-checking unit of the Press Information Bureau (PIB) has stepped in to clarify the situation. In an X post, PIB confirmed that the Reserve Bank of India (RBI) has not made any such announcement, and that ₹500 notes remain legal tender.
“Is the ₹500 note set to be phased out by 2026? 🤔A #YouTube video on the YT Channel ‘CAPITAL TV’ (capitaltvind) falsely claims that the RBI will discontinue the circulation of ₹500 notes by March 2026,’ the PIB Fact-Check posted on X.

It said, “✔️@RBI has made NO such announcement. ✔️₹500 notes have NOT been discontinued and remain legal tender.🚨 Don’t fall for such misinformation. Always verify news from official sources before believing or sharing it!”

Further, a man, claiming to be a Chartered Accountant (CA), had also said that the RBI has instructed all banks to stop dispensing Rs 500 banknotes from ATMs by September 30. He claimed that the final aim is to reduce the “circulation of Rs 500 banknotes from all bank ATMs by 75% initially, and then by 90% by March 31, 2026.” “Going forward, ATMs will only dispense Rs 200 and Rs 100 notes,” he had said.

What RBI Said on Rs 100, Rs 200 Notes?

Earlier in April this year, the RBI had asked banks to ensure that ATMs dispense Rs 100 or Rs 200 denomination notes to enhance the availability of these currency notes to the public.
“As part of an endeavour towards enhancing public access to frequently used denominations of banknotes, it has been decided that all banks and White Label ATM Operators (WLAOs) shall ensure that their ATMs dispense Rs 100 and Rs 200 denomination banknotes on a regular basis…,” the Reserve Bank of India (RBI) said in a circular.
According to the circular, by September 30, 2025, 75 per cent of all ATMs (Automated Teller Machines) shall dispense either Rs 100 or Rs 200 denomination banknotes from at least one cassette and by March 31, 2026, 90 per cent of all ATMs shall dispense either Rs 100 or Rs 200 denomination banknotes from at least one cassette.

RBI Withdraws Rs 2000 Note

Earlier in May 2023, the RBI had announced the withdrawal of Rs 2000 denomination banknotes from circulation. Rs 2000 banknotes continue to be legal tender.

 

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