New Delhi: A viral message on social media is claiming that Rs 500 notes will stop coming out of ATMs after September 30, 2025. This rumor has caused confusion and concern among many people.
But now, the government and the Reserve Bank of India (RBI) have officially cleared the air - there is no such plan, and Rs 500 notes will continue to be used as legal currency.
Government Clears Rumours in Rajya Sabha
On August 5, 2025, during a session in the Rajya Sabha, Members of Parliament Yerram Venkata Subba Reddy and Milind Murli Deora asked whether RBI had given any instructions to stop Rs 500 note withdrawals from ATMs by September 30, 2025.
In reply, the government said clearly that there is no proposal to stop Rs 500 notes, and these notes will continue to be distributed along with Rs 100 and Rs 200 notes in ATMs.
More Rs 100 and Rs 200 Notes in ATMs, Not a Ban on Rs 500
What the RBI has actually done is ask banks and white-label ATM operators to make sure that at least 75 percent of their ATMs offer Rs 100 and Rs 200 notes by September 30, 2025. This percentage is supposed to increase to 90 percent by March 31, 2026.
This move is meant to improve access to smaller denominations, but it does not mean Rs 500 notes will stop being available in ATMs. They will still be a part of the ATM note mix.
No Need to Panic or Believe Rumours
Both the government and RBI have said there is no reason for the public to worry. Rs 500 notes are still valid, and if any changes are ever made in the future, the public will be officially informed in advance.
So, people are advised not to believe in fake messages on social media and continue using Rs 500 notes without fear.
