Will ₹500 Notes Be Discontinued? Government Clears the Air on Viral Rumours

Rumours have been swirling across social media platforms over the past few days suggesting that the ₹500 currency note will soon be banned by the Indian government. Following the withdrawal of ₹2,000 notes, many speculated that ₹500 notes would be next. A viral video making bold claims about a 2026 phase-out added fuel to the fire, sparking confusion among citizens. However, the Government of India has officially confirmed that these claims are false.

🚫 What’s the Viral Claim?

A YouTube video uploaded on June 2, 2025, by a channel named Capital TV claimed that the ₹500 note will be banned starting March 2026, and would be completely withdrawn from circulation by the end of that year. The video, over 12 minutes long, quickly went viral, amassing more than 5 lakh views. The anchor cited unnamed "sources" to support the assertion, leading many to believe a new demonetisation drive was underway.

🛑 PIB Fact-Check: No Ban on ₹500 Notes

In response to the growing panic, the Press Information Bureau (PIB), the official government body for communication and fact-checking, issued a strong denial of the rumour. On its social media platform XX (formerly Twitter), PIB clarified:

"Claims regarding the discontinuation of ₹500 notes are completely baseless. ₹500 currency notes remain legal tender."

The government has urged citizens not to believe or share such misleading content without verifying it through official sources. According to the PIB, the video is part of a deliberate misinformation campaign, and it warned the public to be cautious about such content circulating online.

✅ ₹500 Note Is Legal Tender

As of June 8, 2025, the ₹500 note is in full legal circulation and is accepted across all transactions. The Reserve Bank of India (RBI) has not issued any notice suggesting a change in the status of ₹500 notes. Retailers, banks, and consumers continue to use these notes without any issues.

The confusion arises largely because of the prior withdrawal of the ₹2,000 notes in 2023. However, experts have noted that this move was not meant to be a repeat of demonetisation but was a gradual phasing out due to low circulation and hoarding concerns.

🧾 What Should You Do as a Citizen?

• ✔️ Trust official sources: Always check information on official government portals such as pib.gov.in, rbi.org.in, or verified social media accounts.

• ❌ Don’t forward unverified videos or messages: Spreading fake news contributes to public confusion and could lead to panic.

• ❗ Look out for PIB Fact-Checks: The PIB regularly posts myth-busting alerts on various topics, especially viral misinformation related to finance, currency, and public policy.

📱 Social Media Misinformation on the Rise

This isn’t the first time fake news about currency bans has circulated widely. With increased dependence on social media for information, misleading videos and messages spread rapidly, especially when associated with sensitive topics like money. Experts advise media literacy and critical evaluation of such claims before reacting or sharing them.

🔚 Conclusion: No Need to Panic

To sum up, the ₹500 note is not being banned. The viral video making these claims is false and misleading, and the Government of India has officially debunked it. If you’re holding ₹500 notes, you can continue to use them confidently.

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