Summary of this article
PIB denies rumours on Rs 500 note withdrawal
RBI has made no announcement on stopping Rs 500
Rs 500 notes remain legal tender, ATMs unchanged
Claims circulating on social media have indicated that the Reserve Bank of India (RBI) will stop distributing Rs 500 currency notes to ATMs from March 2026, and the denomination will be out of circulation completely. These messages have been presented as authoritative information, which has caused confusion among the public.
To solve the problem, the government came out to clear the air and dispel the misinformation.
No Intention To Cease Rs 500 Notes
The Press Information Bureau (PIB) has categorically disregarded these allegations. The PIB Fact Check team has reported that RBI has not announced any cancellation of Rs 500 notes either in ATMs or in general circulation from March 2026 or in any other time.
PIB has confirmed that all such claims are false and misleading. It has also reiterated that the Rs 500 note remains legal tender and it can be freely used in all cash transactions nationwide.
In the message on X (formerly Twitter), the PIB Fact Check team asked people not to be deceived by such rumours and to look at statements only from official sources before they believe and share such information.
Rs 500 Notes Are Largely Used In ATMs
The most circulated denomination at ATMs is the Rs 500 notes. Although ATMs also dispense notes of Rs 100 or Rs 200, banks tend to hold a larger percentage of Rs 500 notes, in order to ensure that cash transactions are easier for customers.
The higher denomination notes allow people to withdraw more money, but with a smaller number of transactions. Any abrupt withdrawal of Rs 500 notes from the ATMs or circulation would severely interfere with cash accessibility and may lead to unwarranted panic among users. The government has made it clear that there is no such move at all.
Previous Rumours Regarding This
It is not the first occasion when the rumours about the discontinuation of the Rs 500 notes have appeared on social media. False claims have also led to official statements in the past.
In June 2025, the PIB Fact Check team debunked a highly circulated YouTube video in which an anchor stated that Rs 500 notes will be demonetised in March 2026. That assertion too was found to be unfounded, with neither the RBI nor the government making any announcement in support of it.
These rumours highlight how fast unverified information can spread over the Internet, more so when it's about currency and personal finances.
New Government Statement In Parliament
This has also been dealt with in Parliament by the government. In August 2025, Pankaj Chaudhary, the Minister of State in the Ministry of Finance, told Rajya Sabha that it did not propose the discontinuation of the supply of Rs 500 notes.
He also explained that ATMs would still issue Rs 500 notes in addition to Rs 100 and Rs 200 notes. This announcement conveyed that the government has no intention to withdraw or limit the circulation of the Rs 500 currency notes.
The Implications On People
According to the official statements, Rs 500 notes will remain as a legal tender and will still be dispensed in ATMs. There is no factual foundation to these false claims. The government has cautioned people that they should only trust what the official authorities announce regarding any issues involving currency and banking.
