New Delhi, July 13, 2025 — The Government of India has issued an urgent clarification after a viral social media message sparked nationwide confusion by falsely claiming that the Reserve Bank of India (RBI) had ordered banks to stop dispensing ₹500 notes from ATMs by September 2025.
The message, widely circulated on WhatsApp and other platforms, alleged that a phased withdrawal of ₹500 notes was underway, urging citizens to "start liquidating" their holdings before the supposed deadline. According to the viral post, 75% of ATMs would stop disbursing ₹500 notes by September 30, 2025, with a complete halt by March 2026.
Official Response and Fact Check
The Press Information Bureau’s (PIB) Fact Check Unit swiftly responded, labeling the claims as "completely untrue." In a public statement on X (formerly Twitter), PIB Fact Check confirmed Click To View
“No such instruction has been issued by the @RBI. ₹500 notes will continue to be legal tender. Don’t fall for such misinformation. Always verify news from official sources before believing or sharing it!”
Officials emphasized that there is no RBI directive or circular regarding the discontinuation or restriction of ₹500 notes in ATMs. The notes remain fully valid for all transactions nationwide, and the central bank continues to back their use.
What Sparked the Confusion?
The panic appears to have originated from a misinterpretation of an RBI circular issued in April 2025. The circular directed banks and White Label ATM Operators to ensure that their ATMs provide greater access to ₹100 and ₹200 notes, aiming to improve the availability of smaller denominations for everyday transactions. The guidelines require that by September 30, 2025, 75% of ATMs should dispense either ₹100 or ₹200 notes from at least one cassette, rising to 90% by March 31, 2026. However, this move is unrelated to the status of ₹500 notes, which are not being withdrawn or restricted.
Public Reassurance and Call for Caution
The government has urged the public to exercise caution and check official sources before sharing or acting on financial rumors. The PIB Fact Check team reiterated the dangers of misinformation, especially when it concerns the nation’s currency and banking system.
Now Next ?
While the RBI is set to introduce new ₹20 notes bearing the signature of its new Governor, Sanjay Malhotra, all previously issued denominations—including ₹500 notes—remain legal tender and will continue to circulate without restriction.
For the latest updates on India's currency and banking policies, always refer to official government and RBI communications.