Are ₹500 notes being discontinued after September 30, 2025? No, says RBI and government. Fact-check: Viral claims are false. ATMs will still dispense ₹500 notes alongside more ₹100 and ₹200. Latest updates for India.
Are ₹500 Rupee Notes Being Discontinued After September 2025? The Short Answer
No, ₹500 notes are not being banned or phased out after September 30, 2025. A viral rumor claiming RBI plans to stop them has been officially debunked by the Government of India and RBI. If you’re asking “Will ₹500 notes stop working after September 2025?” or “Is RBI discontinuing ₹500 currency?”, the answer is a clear no—they remain legal tender and widely available. This confusion stems from a real RBI directive, but it’s about boosting smaller notes, not scrapping ₹500.
What’s Behind the Viral Rumor About ₹500 Notes?
Social media and WhatsApp forwards exploded in June-August 2025 with claims like “RBI to stop ₹500 notes from ATMs by September 30, 2025—only ₹100 and ₹200 left!” Videos from channels like CAPITAL TV fueled panic, leading people to rush to banks to exchange notes. The Press Information Bureau (PIB) quickly labeled it “fake and misleading” on X, confirming no such plan exists.
What Did the Government Say in Parliament?
On August 5, 2025, Rajya Sabha MPs Yerram Venkata Subba Reddy and Milind Deora questioned Finance Minister about reducing ₹500 note printing. The reply? “No plans to prioritize lower denominations or stop ₹500 supply.” RBI decides print volumes based on public demand, ensuring a balanced mix. As of October 2025, ₹500 notes continue circulating normally.
The Real RBI Directive: More ₹100 and ₹200 in ATMs
The rumor twisted an April 28, 2025, RBI circular titled “Dispensation of ₹100 and ₹200 Denomination Banknotes through ATMs.” It directs banks and White Label ATM Operators (WLAOs) to increase smaller notes for everyday transactions:
- By September 30, 2025: 75% of ATMs must dispense ₹100 or ₹200 from at least one cassette.
- By March 31, 2026: 90% compliance.
This isn’t about removing ₹500—ATMs will still load them alongside smaller denominations. Progress: As of June 2025, 73% ATMs already meet the target.
| Milestone | Target % of ATMs with ₹100/₹200 | Purpose |
|---|---|---|
| Sept 30, 2025 | 75% | Boost small transaction ease |
| March 31, 2026 | 90% | Nationwide access to lower notes |
Will ₹500 Notes Still Work in ATMs and Shops?
Yes! RBI confirms ₹500 notes are legal tender indefinitely unless announced otherwise. ATMs won’t exclude them; the directive adds options, not restrictions. If you’re wondering “Can I still withdraw ₹500 from ATMs after September 2025?”, absolutely.
FAQ: Quick Answers on ₹500 Notes 2025
- Is the ₹500 note banned after September 2025? No, it’s fully valid legal tender.
- Why more ₹100/₹200 in ATMs? To ease small daily transactions.
- What if I have old ₹500 notes? They work everywhere—no exchange needed.
- When will RBI announce any changes? Only via official channels—ignore social media hype.
