ATMs across India to stop dispensing Rs 500 notes from September? Here's the truth
New Delhi: Is the Narendra Modi government planning to stop dispensing Rs 500 notes from ATMs across India? A message is going viral on social media platforms (Instagram, Facebook, Twitter and other) claiming that Rs 500 notes will stop being issued from ATMs starting September. The post claims the Reserve Bank of India has asked all banks to stop dispensing Rs 500 notes from ATMs after September 30, 2025. It also claims that, going forward, only Rs 200 and Rs 100 notes will be available in ATMs.
The claim caused a stir as soon as it surfaced. In response, the government quickly acted to debunk the misinformation. The Press Information Bureau (PIB) took to social media and labeled the post as 'Fake', stating that RBI has issued no such directive to banks.
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
PIB advised the public to ignore such false messages and rely only on official sources for information. Rs 500 notes will remain valid, and people can continue to use them for transactions as usual.
New Directive by Reserve Bank of India:
In its recent notification, the Reserve Bank of India (RBI) revised its guidelines, directing 75 percent of the currency notes dispensed through ATMs should be in ₹100 and ₹200 denominations September 30. This percentage is to increase to 90 percent by March 31, 2026.
The objective behind this move is to address the shortage of smaller denominations and reduce inconvenience for customers. With this change, people are expected to face fewer difficulties in getting smaller notes.
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