PIB Issues Fact Check On Viral Claim About RBI Stopping ₹500 Notes From ATMs

The Press Information Bureau’s fact-checking unit has clarified a viral message circulating on social media and WhatsApp claiming that the Reserve Bank of India (RBI) has instructed banks to stop dispensing ₹500 notes from ATMs by September 2025.

The PIB categorically stated that the RBI has not issued any such directive and called the claim ‘false’.

Citizens who believed the ₹500 denomination was being phased out panicked unnecessarily as WhatsApp groups and social platforms quickly spread the misinformation.

Some even speculated that the notes would soon lose their legal tender status.

Addressing these rumours, PIB Fact Check wrote, “Has RBI really asked banks to stop disbursing ₹500 notes from ATMs by September 2025? A message falsely claiming exactly this is spreading on #WhatsApp #PIBFactCheck No such instruction has been issued by the @RBI ₹500 notes will continue to be legal tender.  Don’t fall for such misinformation. Always verify news from official sources before believing or sharing it!”

Clarification from Authorities

Officials emphasised that the RBI has made no announcement regarding the withdrawal or restriction of ₹500 notes from ATMs.

They urged citizens to rely on updates only from official channels such as the RBI website and PIB Fact Check.

The bureau reminded users that spreading unverified messages can create confusion in the financial system and impact public trust.

With social media becoming a primary source of information, false financial claims can spread rapidly and trigger panic.

The PIB’s prompt clarification aims to stop the misinformation before it causes further unrest.

Experts on digital literacy stress the importance of verifying information, especially on sensitive topics like currency and banking regulations.

They advise citizens to cross-check such claims through official government portals and avoid sharing content without confirmation.

The Reserve Bank of India continues to affirm that ₹500 notes remain a valid legal tender with no changes in their usage.

Authorities have issued no instructions to banks to discontinue the circulation of ₹500 notes through ATMs or other channels.

Authorities have also pointed out that similar rumours have gone viral in the past, particularly after the 2016 demonetisation.

Most of these claims turned out to be baseless, underscoring the need for responsible sharing of financial information.

The government has urged the public to:

• Ignore unverified WhatsApp forwards.
• Check information only through the RBI or PIB Fact Check.
• Avoid spreading rumours that can create unnecessary panic.

Digital safety experts emphasise that sharing factual information and promoting awareness are key steps in curbing misinformation in the digital age.

The PIB reiterated that ATMs will continue dispensing ₹500 notes and confirmed they will remain legal tender beyond September 2025, dismissing the viral claim as completely unfounded.

Also Read: PIB Issues Fact Check On Viral Claim About New WhatsApp Monitoring Guidelines