Government Debunks Viral Claims On Rs 500 Notes Being Withdrawn From ATMs

The Central government has dismissed as false a series of social media claims suggesting that the Reserve Bank of India (RBI) plans to stop dispensing Rs 500 currency notes from ATMs by March 2026.

Officials clarified that the central bank has made no such announcement and that the notes continue to remain legal tender.

Responding to the viral posts, the Press Information Bureau’s fact-checking wing, PIB Fact Check, took to the social media platform X to refute the misinformation.

The unit said online claims were entirely fabricated and had no basis in any official RBI communication.

PIB Fact Check stated that the RBI has neither announced nor indicated any move to withdraw the Rs 500 notes from circulation. It emphasised that the denomination remains valid for all transactions and urged the public to avoid being misled by unverified messages.

The fact-checking unit also advised citizens to rely only on official sources for financial information, warning that such misleading claims often aim to create unnecessary panic and confusion.

Similar Rumours Have Surfaced Before

This is not the first time similar rumours have surfaced. In August last year, the government labelled a widely shared WhatsApp message as untrue.

The message claimed that banks had received instructions to stop issuing Rs 500 notes through ATMs by September 30.

The message further alleged that a majority of ATMs would phase out the denomination by March 2026.

At the time, PIB Fact Check categorically denied the claims and confirmed that the RBI had issued no such directions. The unit reiterated that Rs 500 notes continued to be legal tender and remained in active circulation.

A comparable claim had gone viral in July, alleging that the RBI had devised a phased plan to stop issuing Rs 500 notes via ATMs by 2026. PIB Fact Check had rejected the assertion then as well, stating that no directive of this nature existed.

Officials have repeatedly urged the public to exercise caution when encountering financial information on social media.

The government warned that such messages aim to mislead people. It urged users to verify claims through authorised channels before sharing them further.

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