Government Dismisses Rumors About Rs 500 Notes Discontinuation

Central Government Addresses Misinformation

On January 2, the Central government firmly rejected false claims circulating on social media regarding the Reserve Bank of India (RBI) potentially halting the distribution of Rs 500 notes from ATMs by March 2026.

The Press Information Bureau's fact-checking division, PIB Fact Check, took to X to clarify that these assertions are entirely unfounded.

"There are posts claiming that the RBI will stop Rs 500 notes from ATMs by March 2026. This information is false," the official account stated.

The Central Bank has not made any such declaration.

"Rs 500 notes are still valid and have not been withdrawn. Do not fall prey to this misinformation. Always verify news through official channels before accepting or sharing it," PIB Fact Check advised.

Last August, the government labeled a WhatsApp message as "untrue," which suggested that the RBI had instructed banks to stop dispensing Rs 500 notes through ATMs by September 30. They confirmed that no such directive had been issued.

The misleading message also claimed that 90% of ATMs would stop dispensing Rs 500 notes by March 31, 2026, and 75% by September 30.

At that time, PIB Fact Check reiterated that the RBI had not issued any such orders and that Rs 500 notes remain legal tender. They urged the public to disregard such false claims.

The Fact Check Unit emphasized the importance of verifying financial information from official sources and warned that such messages are designed to mislead.

In July, a similar rumor gained traction on social media, alleging that the RBI had a phased plan to cease issuing Rs 500 notes to ATMs by 2026. PIB Fact Check had also refuted this claim, stating that no such directive existed.