₹500 Note to Be Discontinued? Viral Claims Raise Concerns — Know the Truth Behind RBI’s ATM Guidelines and Currency Strategy
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Mumbai | May 6, 2025 — The Reserve Bank of India (RBI) has issued instructions to all banks across the country to ensure that approximately 75% of ATMs are filled with ₹100 and ₹200 denomination notes by September 2025. This move has sparked widespread speculation about the future of the ₹500 note prompting questions on whether it is next in line for discontinuation.
As per reports, Ashwini Rana, banking expert and founder of Voice of Banking, provided clarity on the situation. According to Rana, the RBI is aiming to reduce dependency on higher denomination notes like ₹500, especially in cash transactions. “The RBI seems to believe that lower denomination notes help maintain transparency and reduce large cash-based dealings,” he explained.
With the ₹2000 note already withdrawn from circulation, similar steps with the ₹500 note cannot be ruled out in the future. However, Rana emphasized that no official decision has been made yet regarding the discontinuation of ₹500 notes. “As of now, the ₹500 note remains legal tender and is in active circulation. But if a decision to phase it out is made in the future, it shouldn’t come as a surprise,” he added.
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Another factor influencing the RBI’s move is the growing shift toward digital transactions. With India increasingly adopting digital payment platforms and the central bank promoting initiatives like the e-Rupee, the demand for physical currency is gradually declining. Rana also noted that the printing of currency notes involves significant government expenditure, which the RBI aims to reduce by promoting the use of lower denomination notes in ATMs.
To summarize, while there is no current plan to ban the ₹500 note, the RBI’s recent steps and expert opinions suggest that changes in currency circulation policies could emerge in the near future.
Balwadkar
Disclaimer: The information provided is for general awareness only. Before making any financial decisions or investments, it is advisable to consult certified financial experts.
