Truth Behind ₹500 Note Ban: RBI Reveals the Facts
Fact Check: ₹500 Notes Will Remain Legal Tender — RBI Has Not Directed Banks to Withdraw Them from ATMs by September
Over the past few days, many Indians have been caught off guard by a sudden wave of rumors claiming that the ₹500 note will be phased out by March 2026. These claims, mostly fueled by YouTube videos and social media forwards, have caused widespread confusion—leaving people wondering if they should start offloading their ₹500 notes.
But here’s the truth: there is no such plan.
Both the Reserve Bank of India (RBI) and the Press Information Bureau (PIB) have stepped in to clear the air. According to an official clarification, the viral claim is completely false. The RBI has not issued any directive, notification, or decision regarding the discontinuation of ₹500 currency notes. These notes remain legal tender and will continue to be in circulation as usual.
Social Media Sparks Confusion
This misleading rumor seems to have originated from a YouTube video that claimed the RBI would stop the circulation of ₹500 notes starting March 2026. The video quickly gained traction, leading many to believe the claim without verifying it from official sources. In response, PIB conducted a fact-check and labeled the content fake.
The PIB has advised citizens to be cautious and not believe or forward such messages unless they come from trusted sources like the RBI or PIB itself. Blindly trusting social media content, especially videos and unverified posts, can lead to unnecessary panic.
Rise in Fake Currency Adds to Concern
Interestingly, this misinformation surfaced around the same time the RBI published a report highlighting a worrying increase in counterfeit ₹500 notes. According to the data, there was a 37.3% spike in fake ₹500 notes detected during 2024–25. A total of 1.18 lakh counterfeit notes were seized in this period, with a total value of ₹5.88 crore. In comparison, 85,711 fake notes worth ₹4.28 crore were detected in 2023–24.
The problem isn’t limited to ₹500 notes. Fake ₹200 notes are also on the rise. In 2024–25, 32,660 counterfeit ₹200 notes were found, valued at ₹65.32 lakh, up from 28,672 fake notes worth ₹57.34 lakh last year.
RBI Continues Printing ₹500 Notes
To reinforce confidence, the RBI confirmed that it is still printing and distributing new ₹500 notes under the Mahatma Gandhi (New) Series. This not only indicates that the denomination is here to stay but also signals the central bank’s continued commitment to making cash easily available and trustworthy.
Digital Payments Keep Surging
While cash remains king for many, digital transactions are witnessing explosive growth. In December 2024 alone, Unified Payments Interface (UPI) processed 16.73 billion transactions worth a whopping ₹23.25 lakh crore. This marked a significant jump from ₹21.55 lakh crore in November, showing that more Indians are embracing digital payment platforms for everyday transactions.
So, should you be worried about your ₹500 notes? Absolutely not. The RBI hasn’t issued any directive to withdraw them, and PIB has called the viral claim bogus. The note remains valid, widely accepted, and in active circulation.
Before believing or sharing any financial news, especially on social media, take a moment to verify it from trusted government sources.
