RBI Notes: Is the ₹500 Currency Note Being Discontinued? Here’s the Clarity!
Over the past few days, a post on social media platform X (formerly Twitter) has gone viral, claiming that the Reserve Bank of India (RBI) is planning to withdraw ₹500 notes from circulation.
Over the past few days, a post on social media platform X (formerly Twitter) has gone viral, claiming that the Reserve Bank of India (RBI) is planning to withdraw ₹500 notes from circulation. The post also suggests that in the coming days, 90% of ATMs will dispense only ₹100 and ₹200 notes.
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What Does the Viral Post Say?
The viral message contains a screenshot allegedly showing an official order from RBI instructing banks to increase the availability of ₹100 and ₹200 denomination notes in ATMs. Many users misunderstood this as a move to ban ₹500 notes, causing panic and speculation online.
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What Does the Actual RBI Circular State?
Upon closer investigation, it has been found that the RBI did indeed issue an advisory to banks. However, nowhere in the circular is there any mention of withdrawing ₹500 notes. The official instruction is solely about increasing the availability of smaller denomination notes—₹100 and ₹200—in ATMs.
RBI’s Intent Behind the Advisory
The RBI’s goal is to ensure that smaller currency denominations are more accessible to the public. Often, customers withdrawing high-denomination notes like ₹500 or ₹2000 face challenges in getting change, especially at small shops and local vendors. To ease this issue and reduce inconvenience, the RBI is encouraging banks to stock more lower denomination notes in their ATMs.
Is the ₹500 Note Being Banned?
No. There is no official announcement or indication from the Reserve Bank of India that ₹500 notes are being banned or withdrawn from circulation. The ₹500 note continues to be a legal tender and will remain in use. The viral post spreading this misinformation is completely false.
