Rs 500 Ban in India: A viral WhatsApp message claiming that Rs 500 notes will be phased out by March 2026 has caused panic among citizens across India. The message alleges that the Reserve Bank of India (RBI) has asked banks to stop disbursing Rs 500 notes from September 30, 2025, and aims to eliminate them entirely from ATMs by March 31, 2026.
However, the Press Information Bureau (PIB) Fact Check has confirmed that no such directive has been issued by the RBI and that the message is completely false.
What Did the Viral Message Say?
The misleading message, circulated widely on WhatsApp, states:
“RBI has asked all banks to stop disbursing 500 notes by 30 Sept 2025 from ATM. Target is 75% of all BANKS ATM & then 90% ATM by 31 Mar 2026. ATM going forward will disburse only 200 and 100 notes only. So start liquidating the Rs 500 notes that you have in hand from now on.”
The message created widespread confusion, with people rushing to banks and ATMs fearing their Rs 500 notes would become invalid.
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.
— PIB Fact Check (@PIBFactCheck) July 12, 2025
PIB Fact Check: Rs 500 Notes Are Legal Tender
The PIB Fact Check team stepped in to stop the spread of misinformation. In a post on X (formerly Twitter), PIB wrote:
“Has RBI really asked banks to stop disbursing Rs 500 notes from ATMs by September 2025? No such instruction has been issued by the RBI. Rs 500 notes will continue to be legal tender. Do not fall for such misinformation. Always verify news from official sources.”
RBI Has Not Issued Any Such Circular
The Reserve Bank of India has not released any notification or circular announcing a ban or phase-out of Rs 500 notes. These notes continue to be valid for all transactions across the country.
The confusion likely stemmed from a genuine RBI circular released in April 2025, which advised banks and White Label ATM Operators (WLAOs) to increase the availability of smaller denominations like Rs 100 and Rs 200 notes in ATMs. The circular made no mention of withdrawing Rs 500 notes from circulation.
What You Should Do
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Do not panic or attempt to exchange your Rs 500 notes unnecessarily.
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Ignore and report such viral messages on WhatsApp or social media.
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Always verify monetary or banking news via official RBI updates or trusted government channels like PIB Fact Check.
