Over the past few weeks, social media has been buzzing with shocking claims that the ₹500 note would soon be banned or phased out. Messages circulated widely on WhatsApp and YouTube suggested that banks had been instructed to stop dispensing ₹500 notes from ATMs and that these notes would eventually lose their legal status. The Reserve Bank of India (RBI) has now officially broken its silence on the matter and set the record straight.
The Viral Rumor
According to the viral posts, ATMs were to stop dispensing ₹500 notes by September 2025, and by March 2026, only ₹100 and ₹200 notes would be available. This created panic among people, leading many to believe that the ₹500 note would no longer be valid for transactions.
RBI’s Clarification
RBI has categorically denied all such claims. The central bank has made it clear that the ₹500 note continues to remain a legal tender and there is no plan to withdraw or ban it. The Government of India has also confirmed there is no such proposal under consideration.
What’s Really Happening
What actually prompted the confusion is a recent RBI directive asking banks and ATM operators to ensure better availability of smaller denomination notes. The guideline states that by September 2025, most ATMs should have at least one cassette dispensing ₹100 or ₹200 notes, and this should further increase by March 2026. However, this is only about improving the circulation of smaller notes and has nothing to do with removing ₹500 notes from the system.
The Bottom Line
The ₹500 note is safe, valid, and will continue to remain in circulation. There is no ban, no withdrawal, and no restriction on its use. The public is advised not to fall for fake messages or forward them without verification. RBI’s clarification puts an end to all speculation and reassures citizens that the ₹500 note will remain an essential part of the currency system.