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₹500 Notes Not Banned; ATMs Will Still Dispense Them, RBI Clarifies

4 Aug 2025 : A message is going viral on WhatsApp and social media, creating confusion and panic among the public. The message claims that the RBI has instructed banks to stop dispensing ₹500 notes from ATMs by September 2025 and has directed all banks to gradually remove them from ATMs. It also advises people to either spend or exchange their ₹500 notes now, as they will supposedly become invalid later. So, what’s the truth behind this message?

Exposing the viral message
The Government of India’s official fact-checking unit, PIB Fact Check, has completely dismissed this viral claim as fake and misleading. Through a post on social media, PIB clarified that RBI has issued no such order, and ₹500 notes are completely legal and in circulation.

PIB has urged the public not to believe such rumors and to always verify the authenticity of any information before sharing it—especially when it relates to money or government policies.

Where did the rumor start?
Experts believe the rumor may have originated from an old RBI circular issued in April 2025, which recommended banks and white-label ATM operators increase the availability of smaller denomination notes (₹100 and ₹200). The aim of this circular was to ensure that customers could also get small notes from ATMs easily.

However, some individuals misrepresented this circular, leading to the false rumor that ₹500 notes were being phased out—which is not true.

Can ₹500 notes be discontinued in the future?
As of now, there is no indication that the RBI is planning to discontinue ₹500 notes. If such a major decision were ever made in the future, the government would officially announce it—just like during demonetization.

Until then, ₹500 notes remain completely safe and valid, and you can continue using them with full confidence.

Summary :
Despite viral rumours, RBI and PIB confirm ₹500 notes remain legal tender and will continue in ATM circulation, with no discontinuation planned.

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