Confusion sweeps across the nation In June 2025, confusion broke out across the country when a viral video said that the ₹500 would soon be phased out by March 2026. The Reserve Bank of India (RBI) has intervened to set the record straight and soothe public fears.
RBI Confirms: No Withdrawal of ₹500 Notes
The RBI has clearly denied any embargo on ₹500 notes. In an official release, the central bank said that all notes in the denomination of ₹500 under the Mahatma Gandhi (New) series will continue to be legal tender. The clarification is a response to an ill-informative social media post that created unnecessary fear2.
New Notes, Same Value
In April 2025, the RBI released new ₹500 banknotes with the Governor Sanjay Malhotra’s signature. The new notes are similar in design and security features to the old notes, and the withdrawal is standard currency practice. The shift has no connection to any demonetization or removal process — that was false information circulated in online videos.
Focus on Smaller Denominations
Even though ₹500 notes are still in use, the RBI has asked banks and ATM operators to facilitate more number of ₹100 and ₹200 notes. The move is part of the initiative to make smaller denomination notes available for common transactions in rural and semi urban areas. It can at max only indicate a change, but not a reduction in use / worth of ₹500 note.
Public Urged to Ignore Rumors
The Press Information Bureau (PIB) has also debunked the video, which it has termed misleading, and unverified. All are requested to rely only on the information placed by the RBI and desist from spreading unfounded reports. The bank insisted any large decision on the currency would be well flagged in advance.
Looking Ahead
As of June 2025, the ₹500 banknote continues to be in use in India, and is a fixture in India’s currency system. The RBI’s recent update is a reiteration of its resolve to also ensure monetary stability and trust in the public. Cash, especially higher denominations, continues to hold an important place in the economy, even as digital payments expand.
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