500 Rupee Note Ban? RBI Clarifies Amid Viral Video Rumors

A viral video circulating on YouTube has sparked widespread speculation about the potential discontinuation of ₹500 currency notes by 2026. The video, published by a YouTube channel named Capital TV, claims that the Reserve Bank of India (RBI) is planning to stop issuing ₹500 notes by March 2026—leading many to fear the return of demonetization-like measures. However, the RBI has not issued any official notification supporting these claims.

In fact, the ₹500 note continues to be legal tender and is currently being circulated and accepted across the country. The speculation seems to have arisen from a misinterpretation of a recent RBI circular issued in April 2025. In that circular, the RBI instructed banks and White Label ATM Operators (WLAOs) to increase the availability of ₹100 and ₹200 denomination notes through ATMs. This move aims to enhance access to lower denomination currency for day-to-day transactions.

According to the circular,

• By September 30, 2025, 75% of all ATMs must include at least one cassette dispensing either ₹100 or ₹200 notes.

• By March 31, 2026, this requirement will extend to 90% of ATMs.

The RBI emphasized that these measures are purely operational and do not indicate any plan to phase out or demonetize ₹500 notes. “This initiative is intended solely to ensure greater availability of small-denomination notes, which are commonly used in daily transactions,” the RBI clarified. Experts suggest that the viral claims have no basis and appear to be fear-mongering.

Citizens are advised to rely only on official RBI communications for accurate updates related to currency policies. In summary, while changes are being made to improve access to lower denomination notes via ATMs, the ₹500 note remains valid and there is no official plan for its withdrawal or demonetization as of now.