PIB Fact Check: Are ₹500 Notes Being Withdrawn by 2026?

Speculation around the fate of the ₹500 note has been circulating across social media after a viral video claimed the denomination would be withdrawn by March 2026. However, the Reserve Bank of India (RBI) has issued no such directive, and the Press Information Bureau (PIB) has confirmed the claim as false.

₹500 Note Withdrawal Rumour: What RBI and PIB Said

A recent YouTube video on the channel 'Capital TV' stirred widespread confusion by falsely stating that the ₹500 note would be phased out by March 2026. This triggered unnecessary alarm, echoing memories of the 2016 demonetisation. However, PIB Fact Check swiftly debunked the video’s claim. Through an official post on X (formerly Twitter), the agency clarified that RBI has not announced the withdrawal of ₹500 notes. They remain valid and legal tender across India.

Moreover, the RBI has not issued any statements regarding reducing or ceasing the printing or distribution of ₹500 notes. The note continues to play a crucial role in high-value cash transactions and remains widely used across both urban and rural economies.

RBI Guidelines: Focus Only on Smaller Denominations

In April 2025, the RBI issued instructions directing banks to ensure improved public access to ₹100 and ₹200 notes. These instructions mandate that by September 30, 2025, at least 75% of all ATMs should dispense either ₹100 or ₹200 notes from one cassette. This coverage must reach 90% by March 31, 2026.

Importantly, these directions concern only the dispensation of ₹100 and ₹200 notes and make no mention of ₹500 notes being phased out or reduced. This initiative is aimed at increasing the availability of smaller denominations for everyday use, especially in change-based transactions.

Read More: RBI’s New Rule: No Prepayment Penalty on Floating Loans from Jan 1, 2026!

Conclusion

Despite online claims and political suggestions, the ₹500 note is not set to disappear by 2026. The RBI has not issued any such directive, and PIB has confirmed that such rumours are false. The current RBI move is focused only on ensuring greater access to ₹100 and ₹200 notes via ATMs, with no impact on ₹500 denominations. Citizens are advised to verify such claims through official channels before believing or sharing them.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or 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.

Investments in securities are subject to market risks. Read all related documents carefully before investing.