Are Rs 500 currency notes going to be phased out by 2026? Here’s what government has said
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Synopsis
A viral YouTube video falsely claimed that the Reserve Bank of India (RBI) would discontinue Rs 500 notes by March 2026, causing public confusion.
By Sneha Kulkarni, ET Online
The public is confused by a widely shared video on YouTube that claims the Reserve Bank of India (RBI) intends to discontinue issuing Rs 500 notes by March 2026. A YouTube channel named Capital TV channel (capitaltvind) posted a video regarding this, which immediately went viral and made many wonder if the Rs 500 note is being phased out or not.
The video claims that the RBI is working on a phased withdrawal of Rs 500 currency notes, with the process supposedly set to be completed by March 2026.
However, this speculation may have been fueled by a recent RBI circular issued in April 2025, which directed banks and White Label ATM Operators (WLAOs) to increase the circulation of Rs 100 and Rs 200 denomination notes through ATMs.
The RBI in April 2025 asked banks to ensure that ATMs dispense Rs 100 or Rs 200 denomination notes to increase the availability of these currency notes to the public. Banks and White Label ATM Operators (WLAOs) have to implement the direction in a phased manner.
"As part of an endeavour towards enhancing public access to frequently used denominations of banknotes, it has been decided that all banks and White Label ATM Operators (WLAOs) shall ensure that their ATMs dispense Rs 100 and Rs 200 denomination banknotes on a regular basis," the Reserve Bank of India (RBI) said in a circular.
The move, however, is not related to the withdrawal of Rs 500 notes. It's simply meant to improve the public’s access to smaller denomination notes, which are more commonly used for day-to-day transactions.
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What is the rumor regarding the Rs 500 currency note?
The video claims that the RBI is working on a phased withdrawal of Rs 500 currency notes, with the process supposedly set to be completed by March 2026.Is the government planning to phase out the Rs 500 currency note by 2026?
According to PIB Fact Check, the RBI has not made any announcement about phasing out Rs 500 currency notes. These notes remain legal tender and are still being issued and accepted across the country. The video is misleading and not backed by any official statement or RBI circular.However, this speculation may have been fueled by a recent RBI circular issued in April 2025, which directed banks and White Label ATM Operators (WLAOs) to increase the circulation of Rs 100 and Rs 200 denomination notes through ATMs.
The RBI in April 2025 asked banks to ensure that ATMs dispense Rs 100 or Rs 200 denomination notes to increase the availability of these currency notes to the public. Banks and White Label ATM Operators (WLAOs) have to implement the direction in a phased manner.
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What is RBI voice call fraud? What is SBI Rewards fraud? All you need to know to protect your money"As part of an endeavour towards enhancing public access to frequently used denominations of banknotes, it has been decided that all banks and White Label ATM Operators (WLAOs) shall ensure that their ATMs dispense Rs 100 and Rs 200 denomination banknotes on a regular basis," the Reserve Bank of India (RBI) said in a circular.
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The circular further states, “By September 30, 2025: 75% of all ATMs shall dispense either Rs 100 or Rs 200 denomination banknotes from at least one cassette. By March 31, 2026: 90% of all ATMs shall dispense either Rs 100 or Rs 200 denomination banknotes from at least one cassette”.The move, however, is not related to the withdrawal of Rs 500 notes. It's simply meant to improve the public’s access to smaller denomination notes, which are more commonly used for day-to-day transactions.
