Recently a post claiming that the 500₹ notes are going to be phased out by 2026 went viral on social media. The post reads, “RBI has asked all banks to stop disbursing 500₹ notes by 30 sep from ATM. Target is 75% of all banks BANKS ATM & then 90% ATM by 31 Mar26. ATM going forward will only disburse only 200₹ and 100₹ notes only.”
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However, as we investigated, we came to know that the claim was false. Here’s the fact check.
Fact Check
We started our investigation by conducting a relevant keyword search. This led us to a report published in the Business Standard on 6 June 2025. According to the report, the Fact Check Unit of state-run Press Information Bureau has flagged the claim as fake. It said that the RBI has made no announcement regarding the discontinuation of Rs 500 notes. The currency remains legal tender and continues to be in circulation as usual. Government officials have urged citizens not to fall for such misinformation and to verify any such claims through official channels before believing or sharing them.
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We found a tweet on the official X handle of PIB Fact Check on 3 June 2025 refuting the claim. It states that ₹500 notes have not been discontinued and remain legal tender.
The viral post mentioned that the ATMs would be disbursing only ₹100 and ₹200 notes in the future. Conducting a relevant keyword search, we found a report published in The Economic Times on 28 April 2025. According to the report, the Reserve Bank of India has directed banks and White Label ATM Operators to ensure ATMs regularly dispense Rs 100 and Rs 200 notes to improve public access to these denominations. A phased implementation requires 75% of ATMs to dispense these notes from at least one cassette by September 2025, increasing to 90% by March 2026.
Moving forward, we found the RBI Notification on “Dispensation of ₹100 and ₹200 denomination banknotes through ATMs” published on 28 April 2025. The notification reads, “As part of an endeavour towards enhancing public access to frequently used denominations of banknotes, it has been decided that all banks and White Label ATM Operators (WLAOs) shall ensure that their ATMs dispense ₹100 and ₹200 denomination banknotes regularly as per following milestones:
i. By September 30, 2025: 75% of all ATMs shall dispense either ₹100 or ₹200 denomination banknotes from at least one cassette.
ii. By March 31, 2026: 90% of all ATMs shall dispense either ₹100 or ₹200 denomination banknotes from at least one cassette.
Nowhere it was mentioned that the ₹500 notes are going to be discontinued.
Conclusion
From our investigation, we can say that the claim is misleading. The RBI is not going to phase out ₹500 notes by 2026.
Title:₹500 Notes To Be Phased Out By 2026? Here’s The Truth.
Fact Check By: Debanjana BaishyaResult: Misleading
