Will ₹500 Note Disappear by 2026? Truth Behind the Talk
RBI has made this direction to banks only related to dispensation of Rs. 100 or ₹200 denomination. It has never referred the dispensation of Rs. 500 notes
Is the ₹500 Note Really Going to Disappear by 2026? A viral YouTube video recently claimed that India’s ₹500 note would be withdrawn from circulation by March 2026, sparking a wave of speculation and confusion across social media platforms.
The youtube video, the Reserve Bank of India ( RBI ) has allegedly decided to abolish the ₹500 denomination note, causing uncertainty and panic among the general people.
However, the government’s official fact-checking team, the Press Information Bureau’s Fact Check unit (PIB Fact Check) has clarified that the RBI has made no such announcement regarding the discontinuation of ₹500 notes.
“Is the ₹500 note set to be phased out by 2026? 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. #PIBFactCheck @RBI has made NO such announcement. ₹500 notes have NOT been discontinued and remain legal tender. Don’t fall for such misinformation. Always verify news from official sources before believing or sharing it!” the PIB tweeted.
https://x.com/PIBFactCheck/status/1929898698290672131
Recently, Zee News has reported that the Andhra Pradesh CM Chandrababu Naidu urged the Centre to withdraw Rs 500 currency notes in a bid to clamp down on corruption. However, apart from a statement from the CM, there is no such declarations made by the RBI or the Central Government.
Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here
In April 2025, the RBI directed banks to ensure that ATMs dispense ₹100 or ₹200 denomination notes to improve the availability of smaller currency notes for the public. According to the RBI’s instructions, by September 30, 2025, at least 75% of all ATMs must be configured to dispense either ₹100 or ₹200 notes from at least one cassette. Furthermore, by March 31, 2026, this coverage must increase to 90% of all ATMs, ensuring wider access to smaller denominations across the country.
However, the RBI has made dispensation direction only related to Rs. 100 or ₹200 denomination. It has never referred to the dispensation of Rs. 500 notes.
PIB Fact check has provided clarification comes at a time when false information about changes in currencies can easily lead to pointless speculation and unnecessary fret among the general public. One of the highest value denominations now in use, the ₹500 note is essential to daily transactions, particularly in rural and cash-based industries.
Such rumors frequently have their basis in recollection of the November 2016 demonetisation process, in which the government suddenly demonetised the old ₹500 and ₹1,000 notes in the hope to stop fake and black money. Due to the rapidity of that policy shift, people are now more likely to believe similar statements without verifying them with reliable sources.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
