Government Clarifies Rumors Surrounding ₹500 Note

Recent Speculations on ₹500 Note
In the past week, the ₹500 note has been a hot topic of discussion. Reports have circulated in the media suggesting that this denomination might soon be discontinued. The speculation stems from the Reserve Bank of India (RBI) instructing banks to increase the availability of ₹100 and ₹200 notes in ATMs, along with a deadline for compliance. This directive has brought the ₹500 note back into the spotlight.
In response to these rumors, the government's fact-checking unit, PIB, issued a tweet clarifying the situation. They specifically addressed a claim made by a YouTube channel named Capital TV, which suggested that the ₹500 note would be phased out. PIB labeled this information as false, asserting that no such announcement has been made by the RBI. According to their fact-check, the ₹500 note will remain in circulation.
Background of the Issue
The controversy began when the RBI directed all banks to enhance the circulation of ₹100 and ₹200 notes in ATMs. Following this, various experts interpreted the directive in different ways. One expert suggested that while the number of ₹100 and ₹200 notes would increase, the ₹500 notes might gradually be withdrawn from circulation and deposited back into banks. This process, however, is expected to take time and will not happen overnight.
Political Commentary on the Matter
The situation gained further attention when Andhra Pradesh Chief Minister N. Chandrababu Naidu commented that the central government should consider discontinuing ₹500 and higher denomination notes. He argued that large currency notes are a significant source of corruption, and eliminating them could help combat this issue.