A viral WhatsApp message claims the Reserve Bank of India (RBI) has instructed banks to stop dispensing ₹500 notes from ATMs by September 30, 2025, phasing out 75% of ATMs by then and 90% by March 31, 2026. It urged holders to “start liquidating” their ₹500 notes immediately.
The Press Information Bureau (PIB) Fact Check unit has categorically rejected the rumor. In a post on X (formerly Twitter), PIB stated that no such directive has been issued by the RBI and that ₹500 notes remain legal tender for all transactions.
Despite the absence of any RBI announcement, panic spread nationwide, prompting many to rush banks and ATMs. Authorities stress that the note continues to be valid and accepted across India, with no plans for demonetisation.
This confusion appears to stem from an RBI circular issued in April 2025, which directed banks and White Label ATM Operators to ensure better availability of smaller denominations (₹100 and ₹200) in ATMs. That circular did not mention discontinuing or reducing circulation of ₹500 notes.
Citizens are advised to verify financial news through official channels such as the RBI website (rbi.org.in) and the PIB Fact Check handle, and to refrain from sharing unverified messages that can cause undue panic.
Stay informed and rely only on trusted government sources before acting on or forwarding such claims.
