Is RBI withdrawing Rs 500 notes from ATMs by 2026? Govt clears the air

New Delhi: The Central government on Friday dismissed as false social media claims suggesting that the Reserve Bank of India (RBI) would stop dispensing Rs 500 currency notes through ATMs by March 2026.

The Press Information Bureau’s fact-checking unit, PIB Fact Check, said the claim was entirely fake. Posting on X, it noted, "RBI to stop Rs 500 notes from ATMs by March 2026. Some social media posts claim that the Reserve Bank of India will discontinue the circulation of Rs 500 notes by March 2026. This claim is fake."

It further clarified that the central bank “has made NO such announcement”.

“Rs 500 notes have NOT been discontinued and remain legal tender. Don’t fall for such misinformation. Always verify news from official sources before believing or sharing it,” PIB Fact Check said.

The government recalled that a similar WhatsApp message circulated in August last year had been termed “untrue”. That message had claimed the RBI ordered banks to stop issuing Rs 500 notes via ATMs by September 30, and that 90 per cent of ATMs would stop dispensing the denomination by March 31, 2026, followed by 75 per cent by September 30.

At the time, PIB Fact Check had clarified that no such instructions were issued by the RBI and that Rs 500 notes continue to be legal tender. It had also advised the public not to believe or share such false information.

The Fact Check Unit reiterated the importance of verifying financial updates from official sources, cautioning that such messages are designed to mislead.

A similar claim had gone viral in July as well, alleging a phased RBI plan to stop issuing Rs 500 notes through ATMs by 2026. That claim was also denied by PIB Fact Check, which said no such directive existed.