New Delhi, July 13, 2025: The Government of India has issued a firm clarification regarding a viral WhatsApp message that falsely claimed the RBI would stop ₹500 notes from being dispensed at ATMs by September 2025.
The official government fact-checking handle, PIB Fact Check, has labelled this message as completely fake and urged citizens to refrain from spreading misinformation.
What Did the Viral Message Claim?
The message claimed that by 30 September 2025, banks would stop disbursing ₹500 notes from ATMs. It further alleged that:
- 75% of ATMs would stop dispensing ₹500 notes by September
- 90% would follow by March 2026
- ATMs would only dispense ₹100 and ₹200 notes going forward
It also suggested that people should start “liquidating” their ₹500 notes.
What Is the Government Saying?
None of this is true. In a tweet posted on July 12, PIB Fact Check stated:
“Has RBI really asked banks to stop disbursing ₹500 notes from ATMs by September 2025? A message falsely claiming exactly this is spreading on #WhatsApp.”
✅ No such instruction has been issued by @RBI.
✅ ₹500 notes will continue to be legal tender.🚨 Don’t fall for such misinformation. Always verify news from official sources.
What’s the Truth About ₹500 Notes?
The ₹500 banknotes remain legal tender in India. The Reserve Bank of India (RBI) has not made any announcement or issued any circular instructing banks to stop disbursing ₹500 notes via ATMs.
These notes are part of the Mahatma Gandhi (New) Series and are in regular circulation across the country.
RBI’s Recent Update: New ₹20 Notes
Interestingly, the RBI is releasing new ₹20 denomination banknotes bearing the signature of newly appointed RBI Governor Sanjay Malhotra. The bank clarified that all previously issued ₹20 notes will remain valid.
This further proves that the central bank is maintaining a consistent currency structure and is not targeting any specific denomination for withdrawal.
Why Misinformation Goes Viral
Such fake messages often gain traction because of past events like demonetization in 2016. People become sensitive to anything hinting at currency withdrawal or changes in ATM operations.
However, the Ministry has urged people to be cautious and always verify news through reliable platforms like:
- PIB Fact Check (Twitter: @PIBFactCheck)
- RBI official website (www.rbi.org.in)
- Press releases from Ministry of Finance
Social Media Users Advised to Stay Vigilant
The government’s clarification came with a strong warning: do not believe or forward unverified claims.
“This type of rumor not only misleads citizens but also affects financial stability. Please fact-check before sharing,” a senior official from the Ministry of Finance told Mint.
Key Takeaways
- No, RBI has not banned ₹500 notes or ATM disbursal of ₹500 notes.
- The viral WhatsApp message is fake and misleading.
- ₹500 banknotes remain legal tender as of July 2025.
- Always verify sensitive financial news via official sources like RBI or PIB.
- RBI is releasing new ₹20 notes signed by Governor Sanjay Malhotra.
