New Delhi: A viral message on WhatsApp has sparked panic across the country. The message claims that Rs 500 notes will be phased out by March 2026. However, the Press Information Bureau (PIB) has clarified that this claim is completely false. The RBI has not issued any such directive and the Rs 500 note continues to be valid for transactions.

The viral WhatsApp message that’s causing confusion reads: “RBI has asked all banks to stop disbursing 500 notes by 30 Sept 2025 from ATM. Target is 75% of all BANKS ATM & then 90% ATM by 31 Mar 2026. ATM going forward will disburse only 200 and 100 notes only. So start liquidating the Rs 500 notes that you have in hand from now on.”

This misleading message created panic among people, prompting many to rush and exchange their Rs 500 notes out of fear.

No, Rs 500 Notes Are Not Being Banned: PIB Fact Check

Amid rising confusion over a viral WhatsApp message, PIB Fact Check stepped in to clarify the truth. Posting on X (formerly Twitter), it said: “Has RBI really asked banks to stop disbursing Rs 500 notes from ATMs by September 2025? No such instruction has been issued by the RBI. Rs 500 notes will continue to be legal tender. Do not fall for such misinformation. Always verify news from official sources.”

The RBI has not released any circular or announcement supporting the claim, and Rs 500 notes remain completely valid for use across the country.

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 #PIBFactCheck

No such instruction has been issued by the @RBI.

₹500 notes will continue to be legal tender.

… pic.twitter.com/znWuedOUT8
— PIB Fact Check (@PIBFactCheck) July 12, 2025

The confusion may have stemmed from a genuine RBI circular issued in April, which simply asked banks and White Label ATM Operators (WLAOs) to ensure better availability of smaller denomination notes like Rs 100 and Rs 200 in ATMs.