Speculation surrounding the future of the ₹500 currency note surged in August 2025 due to a viral WhatsApp message claiming that the RBI had instructed a halt on dispensing of the notes via ATMs. The WhatsApp message made outrageous claims, stating that ₹500 notes would be obsolete by 2026. We can now confirm that WhatsApp messages are not credible, as the government has issued a statement confirming the misinformation.
No RBI Order to Withdraw ₹500 Notes
As the PIB has confirmed, the RBI has not issued any directive pertaining to the discontinuation of ₹500 notes. The misinformation has caused panic for the public, resulting in a rush to offices, banks and ATMs to exchange their notes.
Focus on Smaller Denominations
The RBI seeks to improve the circulation of ₹100 and ₹200 notes. An April circular has recommended that banks, as well as ATM service providers, ensure that ATMs are stocked with ₹100 and ₹200 notes. 75% of ATMs are expected to comply with the directive by September 2025, with further growth expected to reach 90% in early 2026.
How These Myths Started
The Reserve Bank of India’s (RBI) recent increase in the issuance of ₹100 and ₹200 notes led to the misconception that ₹500 notes would be phased out. Social media further emphasised this idea, resulting in massive public anxiety. Recently, the Finance Ministry has confirmed that there is no proposal to remove the ₹500 notes and advises the public to wait for official announcements regarding such matters.
Public Urged to Stay Alert
As much as the ₹500 note has been circulating, unconfirmed alerts and claims linked to the note should be avoided. Misinformation regarding the currency note can escalate concerns and disturb traditional banking processes. The Public Interest Broadcast (PIB) and the Reserve Bank of India (RBI) are keen on the protection of public trust, which aids in the timely issuance of such claims.
The ₹500 Note is Staying
From a transaction perspective, the ₹500 note is as relevant as ever. Merchants widely accept the ₹500 note and it can be easily found in ATMs. The Reserve Bank of India is still focused on increasing the availability of ₹100 and ₹200 notes and thus there is no harm for the public. Stay well informed and sceptical of rumours.