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The government has denied rumors about withdrawing Rs 500 notes, clarifying they remain legal tender. This follows a false claim by a YouTube channel, Capital TV.
The government said Rs 500 notes have not been discontinued and remain legal tender.
Amid widespread rumours about the future of Rs 500 currency notes, the government has officially denied any move to withdraw them from circulation. The clarification comes after a viral YouTube video by the channel ‘Capital TV’ (capitaltvind) falsely claimed that the Reserve Bank of India (RBI) would stop the circulation of Rs 500 notes by March 2026.
The government said Rs 500 notes have not been discontinued and remain legal tender.
Is The Rs 500 Note Set To Be Phased Out By 2026?
PIB Fact Check, the government’s official fact-checking arm, has categorically rejected the claim. In a post on X, it wrote, “A YouTube video on the YT Channel ‘CAPITAL TV’ (capitaltvind) falsely claims that the RBI will discontinue the circulation of Rs 500 notes by March 2026. The RBI has made NO such announcement. Rs 500 notes have NOT been discontinued and remain legal tender.”
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… pic.twitter.com/NeJdcc72z2
— PIB Fact Check (@PIBFactCheck) June 3, 2025
It asked people not to fall for such misinformation. “Always verify news from official sources before believing or sharing it!.”
Why This Rumour?
The speculation started after an RBI circular issued in April 2025, which asked banks and White Label ATM Operators (WLAOs) to increase the circulation of Rs 100 and Rs 200 denomination notes in ATMs. They were asked to comply with the order in a phased manner.
In its circular, the Reserve Bank of India (RBI) said, “As part of an endeavour towards enhancing public access to frequently used denominations of banknotes, it has been decided that all banks and White Label ATM Operators (WLAOs) shall ensure that their ATMs dispense Rs 100 and Rs 200 denomination banknotes on a regular basis.”
It added, “By September 30, 2025: 75% of all ATMs shall dispense either Rs 100 or Rs 200 denomination banknotes from at least one cassette. By March 31, 2026: 90% of all ATMs shall dispense either Rs 100 or Rs 200 denomination banknotes from at least one cassette”.
Volume & Value Of Rs 500 Currency Notes In Circulation
According to the Reserve Bank of India’s (RBI) Annual Report for 2024-25, the Rs 500 denomination continues to be the most prevalent banknote in India. As of March 31, 2025, Rs 500 notes constituted 40.9% of the total volume of banknotes in circulation and accounted for 86% of the total value of all banknotes.
The total value of banknotes in circulation increased by 6% during the fiscal year, reaching Rs 36.88 lakh crore.
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously asso…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously asso… Read More
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