Will ₹500 notes no longer be dispensed from ATMs starting in March? Are these notes also going to be discontinued, like the ₹2000 notes?

When we need cash, we often turn to ATMs. We take out our debit card and withdraw the amount we need from the ATM. Obviously, this convenience has eliminated the need to carry cash in our wallets or keep it at home. Since the 2,000 rupee notes were discontinued, ATMs dispense mostly 500 rupee notes. This is currently the highest denomination in circulation. However, there are rumors circulating that ATMs will stop dispensing 500 rupee notes from March 2026. This means that only 100 rupee notes will be available from ATMs. This discussion has been fueled by social media posts. So, is this really going to happen? Will ATMs stop dispensing 500 rupee notes? Are 500 rupee notes going to be withdrawn from circulation, i.e., discontinued?

What is the truth behind the viral post?
A post going viral on social media claims that the Reserve Bank of India (RBI) will stop dispensing 500 rupee notes from ATMs by March 2026. The central government refuted this claim on Friday. The government denied the false news spreading on social media, which claimed that the Reserve Bank would stop dispensing 500 rupee notes from ATMs by March 2026. The government has clearly stated that this claim is completely false.

The government's fact-checking agency, PIB Fact Check, posted on the social media platform X, "Some social media posts claim that the Reserve Bank of India will stop the circulation of 500 rupee notes by March 2026. This claim is fake." The agency said that the RBI has not taken any such decision nor made any such announcement.

500 rupee notes are completely valid
PIB Fact Check also clarified that 500 rupee notes are completely valid and are still in circulation. People have been urged not to believe such rumors and to verify any news from government sources before sharing it. Last August, a similar WhatsApp message went viral, claiming that the RBI had ordered banks to stop dispensing ₹500 notes through ATMs by September 30.  At that time, too, the government had refuted the claim.

That fake message also stated that 90 percent of ATMs would stop dispensing ₹500 notes by March 2026 and 75 percent by September 2026.  The PIB Fact Check had clarified then that the central bank had not issued any such directive.

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