RBI ₹500 Note ATM Ban Rumour: Truth Behind the Viral Claim in January 2026
RBI ₹500 note ATM ban rumour went viral in January 2026. PIB Fact Check clarified that ₹500 notes remain legal tender with no restriction.
As January 2026 began, a message spread rapidly across WhatsApp and social media platforms, claiming that the Reserve Bank of India had instructed banks to stop dispensing ₹500 notes from ATMs. The viral claim alleged that by March 2026, nearly 90% of ATMs would no longer provide ₹500 notes, triggering widespread anxiety among the public.
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Many users compared the situation to the 2016 demonetisation, raising fears of another sudden currency disruption.
PIB Fact Check Dismisses the Viral Claim
The viral message, however, turned out to be completely false. The Press Information Bureau Fact Check unit clarified multiple times on X (formerly Twitter) that:
- No such instruction has been issued by the RBI
- ₹500 notes continue to be legal tender
- There is no plan to withdraw or restrict ₹500 currency notes
According to official clarification, ₹500 notes remain valid for all transactions across India, without any limitations.
Finance Ministry Had Already Denied Such Claims
Adding further clarity, the Finance Ministry had already addressed similar rumours earlier. In August 2025, the Finance Minister officially stated that:
- There is no proposal to discontinue ₹500 notes
- ATMs will continue dispensing ₹100, ₹200, and ₹500 denominations
- No changes to the legal status of ₹500 currency were under consideration
This statement clearly contradicted the claims that resurfaced in January 2026.
How the ₹500 Note Rumour Originated
The confusion appears to have originated from an RBI circular issued in April 2025. In that advisory, banks were encouraged to:
- Increase availability of ₹100 and ₹200 notes in ATMs
- Improve convenience for small-value cash transactions
However, ₹500 notes were never mentioned for withdrawal or reduction. Misrepresentation of this advisory by certain social media posts led to the false impression that ₹500 notes were being phased out.
Viral YouTube Video Added Fuel to the Misinformation
The rumour gained further traction after a YouTube video uploaded in June 2025, which repeated the same false claim. The video amassed millions of views before fact-checkers debunked it, confirming that the information was misleading and incorrect.
Despite earlier clarifications, the claim resurfaced again in January 2026 through WhatsApp forwards.
What the Public Needs to Know
Amid the misinformation, authorities stressed a simple message:
- ₹500 notes are safe
- There is no ban, restriction, or withdrawal
- Holding or using ₹500 notes is completely legal
Citizens have been advised not to rely on unverified WhatsApp forwards or social media posts, especially on sensitive financial matters.
Final Verdict: Viral Claim Is a Rumour
To summarise, the RBI ₹500 note ATM ban rumour that went viral in January 2026 is false. Both the RBI and PIB Fact Check, along with the Finance Ministry, have clearly stated that ₹500 notes remain valid legal tender and will continue to be dispensed by ATMs as usual.
For accurate financial information, people are urged to trust only official and verified government sources.
What’s your opinion on the spread of such financial rumours on social media? Share your thoughts in the comments.
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