A message currently making the rounds on WhatsApp and social media has triggered confusion and concern among the public. The viral post claims that the Reserve Bank of India (RBI) has directed banks to phase out ₹500 currency notes from ATMs by September 2025. It goes further to suggest that citizens should spend or exchange their ₹500 notes immediately, warning that they may become invalid in the near future.
But how accurate is this alarming message?
Fact-Check: No Such Order from RBI
The Government of India’s official fact-checking arm, PIB Fact Check, has categorically dismissed the viral message as false and misleading. Through an official social media statement, PIB clarified that no directive has been issued by the RBI to withdraw ₹500 notes from circulation, and they remain completely legal and valid for all transactions.
The PIB has urged the public not to fall prey to such rumors and to verify the authenticity of any financial or policy-related information before sharing it further.
Has RBI really asked banks to stop disbursing ₹500 notes from ATMs by September 2025? 🤔
A message falsely claiming exactly this is spreading on #WhatsApp #PIBFactCheck
✅ No such instruction has been issued by the @RBI.
✅ ₹500 notes will continue to be legal tender.
— PIB Fact Check (@PIBFactCheck) July 12, 2025
Origin of the Rumor
Experts believe that the confusion may have stemmed from a misinterpretation of an earlier RBI circular. In that document, issued in April 2025, the RBI had advised banks and white-label ATM operators to ensure better availability of smaller denomination notes—such as ₹100 and ₹200—through ATMs.
However, nowhere in the circular was there any mention of withdrawing ₹500 notes. Misreporting and misinterpretation of the document appear to have fueled the baseless speculation that these notes are on the verge of being discontinued.
Will ₹500 Notes Be Withdrawn in the Future?
As of now, there is no indication from the RBI or the government that ₹500 notes will be demonetized or phased out. Any such major policy change would be officially announced by the authorities, just as it was during the demonetization drive in 2016.
Until then, citizens are advised to continue using ₹500 notes with full confidence, as they remain a valid and secure mode of transaction.