Rumours have been circulating on social media that the Reserve Bank of India (RBI) will discontinue Rs 500 currency notes from ATMs by March 2026, which was sparked confusion among public. Several posts have gone viral on social media that claim the RBI would halt the distribution of Rs 500 notes from ATMs and eventually stop their circulation altogether. These posts further suggested that the government plans to ban the 500 rupee note by March 2026, which has created anxiety about cash availability and legal tender status.
However, the fact-check team of the Press Information Bureau (PIB) has revealed that these rumours are totally fake and clarified that the RBI has made no such announcements about discontinuing the Rs 500 note. The PIB’s fact-check unit in a social media post stated that, “Don’t fall for such misinformation. Always verify news from official sources before believing or sharing it.” The PIB emphasised that the Rs 500 note “continues to be legal tender” and remains valid for transactions across the country.
The viral messages specifically claimed that the RBI would stop dispensing Rs 500 notes from ATMs by March 2026 and might restrict ATM disbursals to smaller denominations like Rs 100 and Rs 200. According to the Fact Check team, these assertions are entirely unfounded, and the central bank “has made NO such announcement.”
Previous misinformation about the Rs 500 note
This episode is not the first time misinformation about the Rs 500 note has spread widely on social media. Similar rumours emerged in mid-2025, including a widely shared YouTube clip that falsely claimed the denomination would be demonetised by March 2026. In response to that, the government had already stepped in to clarify that the RBI “has not issued any such instruction” and that Rs 500 notes remain in legal circulation.
Previously, in August 2025, Pankaj Chaudhary, Minister of State, Ministry of Finance, said in Rajya Sabha that the government has no plans to stop the supply of the Rs 500 note. He further added that Rs 500 notes would continue to be available alongside Rs 100 and Rs 200 notes.
