In recent weeks, messages circulating on social media have claimed that the Reserve Bank of India (RBI) will stop dispensing ₹500 notes from ATMs, or discontinue their circulation altogether, by March 2026. These claims have led to avoidable concern among the public.
The government has formally clarified that no such decision has been taken. The ₹500 note continues to be legal tender, and there is no announcement by the RBI or the Ministry of Finance regarding its withdrawal or demonetisation.
What the government has clarified
The Press Information Bureau (PIB), through its Fact Check unit, has categorically stated that:
- Claims about discontinuation of ₹500 notes from ATMs by March 2026 are false
- The RBI has made no announcement on stopping the circulation or disbursal of ₹500 notes
- ₹500 currency notes remain legal tender and can be freely used for transactions
Similar clarifications have been issued in the past when comparable rumours surfaced.
Parliamentary position on ₹500 notes
In August 2025, the Minister of State for Finance confirmed in Parliament that:
- There is no proposal to stop the supply or circulation of ₹500 notes
- ATMs will continue to dispense ₹500 notes alongside ₹100 and ₹200 denominations
This statement remains valid unless formally withdrawn or superseded by a new notification.
Why these rumours recur
High-denomination currency notes often become the subject of speculation due to:
- The 2016 demonetisation experience
- Periodic RBI currency management changes
- ATM recalibration or cash logistics updates being misinterpreted as policy decisions
However, currency management decisions are always communicated through official RBI notifications or government announcements, not through informal or indirect channels.
Practical implications for individuals and businesses
For individuals
- There is no need to exchange, deposit, or avoid ₹500 notes
- ATM withdrawals using ₹500 denominations will continue as usual
For businesses
- Cash transactions involving ₹500 notes remain fully valid
- There is no compliance, accounting, or reporting impact arising from these rumours
For banks and employers
- No change in cash handling, payroll, or ATM operations is required based on current rules
What to rely on going forward
Taxpayers, consumers, and businesses should rely only on:
- RBI circulars and notifications
- Ministry of Finance statements
- Official PIB communications
- Parliamentary disclosures
Social media posts, forwarded messages, and unverified videos should not be treated as authoritative sources for monetary or regulatory policy.
Closing note
As of now, ₹500 notes continue to be legal tender, and there is no plan to discontinue their circulation or ATM disbursal in March 2026 or thereafter. Any change to currency policy would be formally notified and accompanied by clear transition guidelines.
Until such an announcement is made, these claims should be treated as misinformation and disregarded.