Fact Check: No, RBI Is Not Discontinuing Rs 500 Notes

Claim: The Reserve Bank of India (RBI) will discontinue Rs 500 notes, or stop dispensing them from ATMs, by March 2026.

Verdict: Fake.

What went viral

Over the past year, several social media posts and videos claimed that the RBI was about to withdraw Rs 500 notes from circulation. One version was a YouTube video uploaded in June 2025 by a channel called "CAPITAL TV", which claimed the notes would be phased out by March 2026. A later wave of posts claimed the RBI would stop putting Rs 500 notes in ATMs.

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These messages caused worry, especially among people who keep cash savings at home.

What PIB Fact Check found

The Press Information Bureau's fact-checking unit, PIB Fact Check, flagged these claims as fake. It clarified that:

• The RBI has made no such announcement.
• Rs 500 notes have not been discontinued and continue to be legal tender.

The government's clarification was also reported by All India Radio's news service in January 2026.

Why this rumour spreads

Memories of the 2016 demonetisation and the 2023 withdrawal of Rs 2,000 notes make currency rumours easy to believe. Clickbait channels exploit that fear because alarming headlines get more views.

Remember that genuine changes to currency are announced officially by the RBI through press releases on its website, and are widely reported by mainstream media. When the RBI withdrew the Rs 2,000 note, for example, it issued a formal notice with clear timelines for exchange.

How to verify such claims yourself

• Check the press releases section of the RBI website.
• Look for a post from @PIBFactCheck on social media.
• Be suspicious of videos with dramatic thumbnails and no official document.
• Do not forward a message just because it looks urgent.

Bottom line

You can continue to use, accept and deposit Rs 500 notes normally. If someone refuses a genuine Rs 500 note citing this rumour, they are acting on false information.