By News Desk 
The ₹500 note is the most widely used currency in India, accounting for 41% of all the notes in circulation. In terms of value, it represents a staggering 86%. This indicates that the majority of people are relying on ₹500 notes for transactions. On the other hand, smaller denominations like ₹20, ₹50, ₹100, and ₹200 are being used much less frequently. The government aims to encourage people to use smaller notes and adopt digital payments, but this shift has yet to materialize. Recently, Finance Minister Nirmala Sitharaman mentioned that the government is working to promote the use of smaller notes and increase digital transactions. She assured that steps are being taken to ensure greater usage of smaller denominations.
Meanwhile, a video on YouTube has been circulating, claiming that the government plans to gradually phase out ₹500 notes starting March next year. This has created confusion among viewers. The 12-minute video has already garnered over 500,000 views. However, the government has refuted these claims, stating there is no truth to the rumors of ₹500 notes being discontinued. The government clarified that the Reserve Bank of India (RBI) has not made any such announcement.
The government’s fact-finding agency, PIB Fact Check, issued a post on X (formerly Twitter) stating, “The ₹500 note has not been discontinued and remains legal tender. Before trusting or sharing any news, it is important to verify it from official sources.” The current ₹500 note in circulation was reintroduced after the 2016 demonetization, along with the ₹2,000 note, which has since been withdrawn.
Is the ₹500 note set to be phased out by 2026? 🤔
— PIB Fact Check (@PIBFactCheck) June 3, 2025
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