Social media has been on a buzz for the past few days ever since it has been reported that the Reserve Bank of India has given a deadline of September 30, 2025 to the banks and has asked them to ensure that 75 percent of all ATMs must dispense Rs 100 and Rs 200 notes from at least one cassette by then. Following the RBI's direction, multiple users on YouTube started writing posts and making videos that the RBI has planned to phase out Rs 500 currency notes, just like it did with Rs 2000 currency notes.
In fact, a Chartered Accountant (CA) also claimed via X (formerly Twitter) that the RBI has instructed all banks to stop dispensing Rs 500 banknotes from ATMs by September 30. The goal is to reduce the circulation of Rs 500 banknotes from all bank ATMs by 75% initially, and then by 90% by March 31, 2026. Not only this, but Andhra Pradesh CM N. Chandrababu Naidu also urged the Centre to withdraw Rs 500 currency notes in a bid to clamp down on corruption.
Truth behind RBI withdrawing Rs 500 notes from September 2025
Centre's Press Information Bureau's Fact Check unit debunked the viral claim, stating that the RBI is not withdrawing Rs 500 currency notes. PIB shared a video on X and wrote, "Is the ₹500 note set to be phased out by 2026? A #YouTube video on the YT Channel 'CAPITAL TV' (capitaltvind) falsely claims that the RBI will discontinue the circulation of ₹500 notes by March 2026. #PIBFactCheck @RBI has made NO such announcement. ₹500 notes have NOT been discontinued and remain legal tender. Don’t fall for such misinformation. Always verify news from official sources before believing or sharing it!."