PIB Fact Check: RBI Not Stopping ₹500 Notes From ATMs in March 2026

Social media is often flooded with claims that appear credible but lack factual backing. Such messages can spread rapidly, creating unnecessary panic and confusion among the public. 

Recently, one such claim went viral, stating that the Reserve Bank of India would stop the disbursal of ₹500 currency notes from ATMs starting March 2026 and that the government plans to discontinue the circulation of these notes altogether.

Claim About ₹500 Notes From ATMs

According to the viral message, ₹500 notes would no longer be available through ATMs from March 2026, allegedly as part of a government decision to phase out the denomination. Given the widespread use of ₹500 notes in daily transactions and cash withdrawals, the claim raised concerns among many people who rely on ATMs for larger cash withdrawals.

PIB Fact Check Clarifies the Truth

To address the confusion, the Press Information Bureau’s Fact Check team stepped in and issued a clarification through its official social media handle on X. The PIB categorically dismissed the claim, calling it fake and misleading. It clarified that the RBI has made no announcement regarding the discontinuation of ₹500 notes, either from ATMs or from circulation.

The Fact Check team further assured the public that ₹500 notes continue to be legal tender and can be freely used for all cash transactions. People have been advised not to fall for such rumours and to verify information only through official government or RBI channels before sharing it further.

Role of ₹500 Notes in ATM Withdrawals

In practice, ₹500 notes form the backbone of ATM cash disbursal across India. While some ATMs also dispense ₹100 or ₹200 notes, ₹500 notes are preferred as they allow users to withdraw larger sums conveniently. Any sudden withdrawal of this denomination from ATMs would disrupt cash access and potentially trigger panic, making the viral claim even more alarming.

Recurring Rumours Around ₹500 Notes

This is not the first time such misinformation has surfaced. Similar rumours about the demonetisation or withdrawal of ₹500 notes have circulated repeatedly on social media platforms. In June 2025, the PIB Fact Check team debunked another viral video claiming that ₹500 notes would be demonetised in March 2026.

Government’s Stand on ₹500 Notes

In August 2025, Minister of State for Finance Pankaj Chaudhary clarified in the Rajya Sabha that there was no proposal to stop the supply of ₹500 notes. He also confirmed that ATMs would continue to dispense ₹500 notes along with ₹100 and ₹200 denominations.

Also Read: Can You Sell Old Banknotes and Coins in India?

Conclusion

The claim that RBI will stop ₹500 notes from ATMs or discontinue them by March 2026 is false. Official clarifications from PIB and statements from the government confirm that ₹500 notes remain legal tender. Citizens are advised to rely on verified sources and avoid spreading unverified information that can cause unnecessary concern.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a private recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.