RBI Banning ₹500 Notes from ATMs After September? Here’s the Truth Behind the Viral Claim

Social Media Buzz Sparks Confusion Over ₹500 Notes

A message is going viral across WhatsApp and other social media platforms claiming that the Reserve Bank of India (RBI) has issued a directive to stop disbursing ₹500 notes through ATMs after September 30, 2025. The message further suggests that only ₹200 and ₹100 notes will be available at ATMs going forward.

As panic began to spread, the Indian government quickly stepped in to debunk these claims and bring clarity to the situation.

Viral Message Claims RBI Ban on ₹500 Note Withdrawals

The misleading message circulating online alleges that the RBI has instructed all Indian banks to stop dispensing ₹500 currency notes from ATMs by the end of September 2025. It also warns the public to start withdrawing their existing ₹500 notes now, fueling unnecessary fear among users.

The viral claim reads:
"RBI has ordered banks to discontinue ₹500 note withdrawals via ATMs from 30 September 2025. Only ₹100 and ₹200 notes will be dispensed in future."

Government Responds: No Such Directive Issued

The Press Information Bureau (PIB) Fact Check, the official fact-checking arm of the Indian government, has dismissed this message as fake. In a post shared via platform X (formerly Twitter), PIB clarified that the RBI has not issued any such notification to banks.

The PIB wrote:

“A viral message claims that RBI will stop ₹500 notes from being dispensed through ATMs by 30 September 2025. This claim is false. No such instruction has been issued. ₹500 notes remain legal tender.”

₹500 Notes Remain Legal and Valid

According to the clarification, ₹500 notes remain legal currency backed by the RBI, and there is no plan to discontinue their circulation or ATM distribution. The central bank has made no changes to ATM withdrawal configurations related to ₹500 denominations.

This isn't the first time such rumors about demonetization or currency restrictions have surfaced online. Ever since the 2016 demonetization move, any rumor surrounding ₹500 or ₹2000 notes tends to spread rapidly, even without official confirmation.

How to Verify Such Claims

The Indian government urges all citizens to be cautious about misinformation, especially when it concerns currency, banking, or taxation matters. It advises the public to follow these tips:

• Verify with official sources such as rbi.org.in, pib.gov.in, or news from trusted government social media handles.

• Do not forward or share unverified messages on WhatsApp or Facebook.

• Report misleading messages through government portals or cybercrime helplines if necessary.

Stay Alert, Not Anxious

The RBI or the Government of India always communicates any policy changes or currency-related updates through official press releases, notifications, and media statements. If any denomination is to be phased out or recalled, the public will be given adequate notice and guidance.

For now, there is no need to panic or withdraw your ₹500 notes. They continue to be legally valid and in circulation, and will remain so unless the RBI issues an official update.

Conclusion

To summarize:

• No, the RBI has not banned ₹500 note withdrawals from ATMs.

• ₹500 notes remain legal tender and will continue to be dispensed by ATMs.

• The viral message is fake and has been debunked by PIB Fact Check.

• Always verify financial claims through reliable and official channels before acting on them.

Stay informed, stay smart—and don’t fall for WhatsApp forwards without fact-checking.