PIB Fact Check: Has the RBI Asked Banks to Stop Dispensing ₹500 Notes from ATMs by September?

A viral post claiming that the Reserve Bank of India (RBI) has directed banks to cease dispensing ₹500 notes from ATMs by September 2025 has gained traction on social media. However, the Indian government has stepped in to clarify that this claim is entirely false.

RBI Has Not Issued Any Order to Phase Out ₹500 Notes from ATMs

A message widely circulated on platforms like WhatsApp suggests an RBI directive to stop ₹500 note distribution via ATMs by September 30, 2025. It falsely claims a phased strategy targeting 75% of ATMs initially and 90% by March 31, 2026. According to this misleading post, only ₹200 and ₹100 notes will be available from ATMs thereafter. 

The government, through its official PIB Fact Check account, has debunked this claim, confirming that the RBI has not issued any such instruction. ₹500 notes will continue to be valid and actively circulated.

Government’s Warning Against Misinformation

On July 12, 2025, the Government of India urged citizens to steer clear of such misinformation and always verify financial news via authentic official sources. It re-emphasised that the ₹500 denomination remains legal tender and everyday use can continue without concern. The clarification submitted through social media actively addressed the confusion arising from the false post.

Read More: Despite Withdrawal, ₹2,000 Notes Worth ₹6,099 Crore Remain in Use: RBI!

Conclusion

The Government has clearly dismissed the viral social media post as fake news. No instructions have been issued by the RBI to limit or replace ₹500 notes in ATMs. Citizens are encouraged to rely only on verified government sources for financial updates.

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