A panicky social media update announcing that the 500-rupee note will henceforth no longer be available from ATMs has created widespread hysteria. Viral reports state that ATMs will discontinue issuing 500-rupee notes from March 2026.
The post also asserts that the RBI has given a directive to all banks to discontinue distributing five-hundred-rupee notes through ATMs by September 30, 2025. The post also asserts that the target will be 75% of ATMs to discontinue distributing 500-rupee notes by then and 90% by March 31, 2026. Then, it is asserted that ATMs will disburse only 200 and 100 rupee notes. The post claims to guide readers to begin exchanging the 500-rupee note on an immediate basis. But the reports have been proven to be false by the Press Information Bureau (PIB) Fact Check. PIB stated that no such notification has been released by the Reserve Bank of India. Added that the 500 rupee note is legal tender, i.e., it can be spent without any limit.
What you need to know
- No, the RBI has not banned withdrawing 500-rupee notes from the ATMs.
- Payments can be made with the 500 Rupee notes as they are legal tender.
- Do not worry; the spurious message is entirely imaginary.
- As usual, the Reserve Bank or the concerned government departments urge the people to confirm information only from authorized sources.
There is no plan to stop issuing 500-rupee notes from ATMs, even though news is spreading on social media. People should refrain from spreading unverified news and remain calm. Always rely on credible sources like the RBI or the PIB for accurate updates about currency and banking rules.