By News Desk 
Following Andhra Pradesh Chief Minister Chandrababu Naidu’s recent appeal to the central government to discontinue the ₹500 currency note, social media was flooded with speculation. Several viral posts claimed that the Reserve Bank of India (RBI) had issued instructions to phase out the ₹500 note. However, the RBI has now officially debunked these rumors, stating that the ₹500 note remains legal tender and there are no plans to withdraw it.
False Claims Spark Panic on Social Platforms
Over the past few days, posts circulating across various social media platforms suggested that the ₹500 note was on its way out. Some messages even falsely cited RBI guidelines to back their claims, creating confusion and anxiety among the public. In some places, these rumors led to unnecessary panic and hesitation in accepting ₹500 notes.
RBI Issues Official Clarification
Responding to the misinformation, the Reserve Bank of India clarified that the ₹500 note continues to be a valid form of currency and will remain in use for all types of transactions across the country. The central bank stressed that there is no directive or plan in place to discontinue or withdraw this denomination.
Focus on Increasing Supply of Smaller Denominations
The RBI explained that its recent instructions to banks and ATMs were aimed at improving the circulation of lower denomination notes, such as ₹100 and ₹200. This move was intended to address shortages and ease transactions, especially in areas where smaller notes are in high demand — not to phase out the ₹500 note.
₹500 Notes Still Being Printed and Circulated
In its statement, the RBI confirmed that new ₹500 notes from the Mahatma Gandhi (New) Series are still being printed and circulated regularly. This ongoing production reinforces that there is no intention to remove this denomination from the system.
Digital Payments on the Rise, But Cash Still Crucial
The central bank also acknowledged the growing popularity of digital transactions. In December 2024 alone, over 16.73 billion UPI transactions worth ₹23.25 lakh crore were recorded — a significant jump from the previous month. Despite this surge in digital payments, high-value notes like the ₹500 continue to be essential, particularly in areas with limited access to digital infrastructure.