RBI To Phase Out Rs 500 Notes By 2026? Here Is A Fact Check

A viral WhatsApp message, claiming that the Reserve Bank of India (RBI) is preparing to discontinue the circulation of Rs 500 notes by March 2026, has confused the public. The claim has now been officially debunked as false and misleading.

The message, which has been "forwarded many times," alleges that the RBI has instructed all banks to gradually stop dispensing Rs 500 notes from ATMs, 75 per cent of ATMs by September 30, and 90 per cent by March 31, 2026. It urges people to "start liquidating" their Rs 500 notes in advance.

Here's what the viral message says, "RBI has asked all banks to stop disbursing 500 notes by 30 Sept 2025 from ATM. Target is 75% of all BANKS ATM & then 90% ATM by 31 Mar 2026. ATM going forward will disburse only 200 and 100 notes only. So start liquidating the Rs 500 notes that you have in hand from now on."

The Press Information Bureau's Fact Check unit has called out the message as completely untrue. Posting on X, PIB Fact Check clarified that the RBI has issued no such directive and that Rs 500 notes remain legal tender.

"Has RBI really asked banks to stop disbursing Rs 500 notes from ATMs by September 2025? A message falsely claiming exactly this is spreading on WhatsApp. PIB Fact Check:

• No such instruction has been issued by the @RBI.
• Rs 500 notes will continue to be legal tender."

The PIB instructs to not "fall for such misinformation." "Always verify news from official sources before believing or sharing it," they warned.

As of now, there is no official statement or circular from the RBI suggesting any change in the status or circulation of Rs 500 currency notes. The note continues to be accepted for all transactions across the country.

Has RBI really asked banks to stop disbursing ₹500 notes from ATMs by September 2025? ????

A message falsely claiming exactly this is spreading on #WhatsApp #PIBFactCheck

✅ No such instruction has been issued by the @RBI.

✅ ₹500 notes will continue to be legal tender.

????… pic.twitter.com/znWuedOUT8

— PIB Fact Check (@PIBFactCheck) July 12, 2025

This speculation may have been triggered by a genuine RBI circular issued in April, which directed banks and White Label ATM Operators (WLAOs) to increase the availability of smaller denomination notes, specifically Rs 100 and Rs 200, through ATMs.