Social media often amplifies messages that seem credible but are factually incorrect. These posts tend to spread quickly, causing unnecessary anxiety and confusion. Recently, a social media post claimed that the Reserve Bank of India (RBI) would stop dispensing Rs 500 currency notes from ATMs starting March 2026 and that the government planned to withdraw the denomination entirely.
The viral message stated that Rs 500 notes would no longer be accessible through ATMs from March 2026, supposedly as part of a government move to phase out the denomination. Considering how widely Rs 500 notes are used for daily transactions and cash withdrawals, this claim understandably worried people who rely on ATMs for large cash amounts.
PIB Fact Check Clarifies
The Press Information Bureau (PIB) responded to the misinformation with a fact check on its official X account, dismissing the claim as “fake and misleading.” The statement clarified that the RBI has not made any announcement regarding discontinuing Rs 500 notes, either from ATMs or in general circulation.
The PIB further assured the public that the Rs 500 notes remain legal tender and are fully valid for all cash transactions. Citizens are urged to verify information through official RBI or government channels before sharing such messages.
RBI to stop ₹500 notes from ATMs by March 2026❓🤔Some social media posts claim that the Reserve Bank of India will discontinue the circulation of ₹500 notes by March 2026.#PIBFactCheck:❌This claim is #fake!✅ @RBI has made NO such announcement.✅ ₹500 notes have… pic.twitter.com/F0Y3t0wHSf
— PIB Fact Check (@PIBFactCheck) January 2, 2026
Recurring Rumours About Rs 500 Notes
This is not the first instance of such misinformation. Similar claims about the Rs 500 note withdrawal or demonetisation have circulated previously. In June 2025, the PIB Fact Check team debunked another viral post claiming Rs 500 notes would be demonetised in March 2026.
Government Confirms Rs 500 Notes Will Continue
In August 2025, Minister of State for Finance Pankaj Chaudhary clarified in the Rajya Sabha that there was no plan to stop the supply of the Rs 500 note. He confirmed that ATMs would continue dispensing Rs 500 notes alongside Rs 100 and Rs 200 denominations.
