Fake News Alert! ₹500 Notes Not Being Withdrawn, Confirms PIB
The RBI has made it clear that all decisions regarding currency management are publicly communicated via official press releases
The press information Bureau’s (PIB) Fact Check unit has denied social media claims suggesting that the Reserve Bank of India (RBI) is planning to stop the disbursal of ₹500 notes through ATMs by September 2025. The viral post has been clarified to be fake and misleading, with the government urging the public not to fall for such misinformation.
In a tweet posted on August 1, 2025, via PIBFactCheck stated that a YouTube video on the YT Channel 'CAPITAL TV' (capitaltvind) falsely claims that the RBI will discontinue the circulation of ₹500 notes by March 2026. The tweet further stated that the RBI has not issued any such directive.
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The clarification comes at a time when the RBI is managing the withdrawal of ₹2000 denomination notes. The process for this started in May 2023, As per the latest RBI press release dated August 1, 2025, ₹2000 notes worth ₹3.56 lakh crore were in circulation when the withdrawal began and that as of July 31, 2025, only ₹6,017 crore worth remain in circulation which means that 98.31% have been returned.
The release also stated that ₹2000 notes continue to be legal tender. The exchange and deposit of these notes is ongoing through RBI Issue Offices and India Post. In this press release however, there was no official mention of any withdrawal or restriction involving ₹500 notes.
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The spread of such fake news is not uncommon, especially in a country with past experience of sudden demonetisation. The RBI has made it clear that all decisions regarding currency management are publicly communicated via official press releases and should not be trusted if sourced from social media forwards.
Citizens are advised to rely on verified sources such as www.rbi.org.in and @PIBFactCheck. In short, ₹500 notes are here to stay and the public need not panic.
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