Are Rs 500 Notes Being Discontinued? Here's What Govt Says
Last Updated:
The government has denied rumors about withdrawing Rs 500 notes, clarifying they remain legal tender. This follows a false claim by a YouTube channel, Capital TV.
The government said Rs 500 notes have not been discontinued and remain legal tender.
Amid widespread rumours about the future of Rs 500 currency notes, the government has officially denied any move to withdraw them from circulation. The clarification comes after a viral YouTube video by the channel 'Capital TV' (capitaltvind) falsely claimed that the Reserve Bank of India (RBI) would stop the circulation of Rs 500 notes by March 2026.
The government said Rs 500 notes have not been discontinued and remain legal tender.
Is The Rs 500 Note Set To Be Phased Out By 2026?
PIB Fact Check, the government's official fact-checking arm, has categorically rejected the claim. In a post on X, it wrote, 'A YouTube video on the YT Channel 'CAPITAL TV' (capitaltvind) falsely claims that the RBI will discontinue the circulation of Rs 500 notes by March 2026. The RBI has made NO such announcement. Rs 500 notes have NOT been discontinued and remain legal tender."
The speculation started after an RBI circular issued in April 2025, which asked banks and White Label ATM Operators (WLAOs) to increase the circulation of Rs 100 and Rs 200 denomination notes in ATMs. They were asked to comply with the order in a phased manner.
In its circular, the Reserve Bank of India (RBI) said, 'As part of an endeavour towards enhancing public access to frequently used denominations of banknotes, it has been decided that all banks and White Label ATM Operators (WLAOs) shall ensure that their ATMs dispense Rs 100 and Rs 200 denomination banknotes on a regular basis."
It added, 'By September 30, 2025: 75% of all ATMs shall dispense either Rs 100 or Rs 200 denomination banknotes from at least one cassette. By March 31, 2026: 90% of all ATMs shall dispense either Rs 100 or Rs 200 denomination banknotes from at least one cassette".
Volume & Value Of Rs 500 Currency Notes In Circulation
According to the Reserve Bank of India's (RBI) Annual Report for 2024-25, the Rs 500 denomination continues to be the most prevalent banknote in India. As of March 31, 2025, Rs 500 notes constituted 40.9% of the total volume of banknotes in circulation and accounted for 86% of the total value of all banknotes.
The total value of banknotes in circulation increased by 6% during the fiscal year, reaching Rs 36.88 lakh crore.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
36 minutes ago
- Time of India
RBI Tries to Help the Economy Grow
The Reserve Bank of India (RBI) just made a big decision. It cut interest rates again — this time by 0.5% (or 50 basis points). That's good news for people who have to pay EMIs (monthly loan payments), because their payments could now become cheaper. So why did RBI do this? The goal is to help India's economy grow faster. In the last few months, the economy grew by 7.4%, which sounds great. But most of that growth came from the government spending money on building things like roads and bridges. Factories and companies making goods (that's called manufacturing) didn't grow much. And that's a problem because strong factory growth means more jobs and more money in people's pockets. For India to grow well this year, people need to spend more — especially on things like cars and homes. These industries give jobs to millions of people. To help with that, RBI has already made loans cheaper three times this year. Now it's hoping that cheaper loans will make more people buy homes and cars, which will boost the economy. Prices of things (inflation) have finally stopped rising so fast, so the RBI felt safe enough to cut rates. But some experts think people aren't buying more because they simply don't earn enough. After Covid, many carmakers and builders started making only expensive models. Small, cheaper cars and homes became rare. So middle-class families couldn't afford them. Now, with cheaper loans, the RBI hopes more middle-income families can buy these things again. If that happens, businesses will also invest more in new projects — and that will help the economy grow. But if it doesn't, the government may need to focus on helping people earn more money. RBI has said it won't cut rates again soon. So now, everyone's waiting to see: Will this plan work? Facebook Twitter Linkedin Email Disclaimer Views expressed above are the author's own.
Time of India
37 minutes ago
- Time of India
Beyond The Cut
Times of India's Edit Page team comprises senior journalists with wide-ranging interests who debate and opine on the news and issues of the day. RBI can't do anything about sluggish incomes RBI's generous 50bps rate cut cheered markets on Friday, and should ease pressure of EMIs on borrowers soon. But a bigger test lies ahead – will it spur demand, and growth? Although Q4 data for fiscal 2025 was encouraging, its 7.4% growth was mostly powered by govt-led construction. Manufacturing growth remained sluggish, which is a dampener for the central bank's 'growth aspiration' of 7-8%. RBI has already set its growth expectation for the current fiscal at a modest 6.5%. For India to grow in the target range, private consumption – which accounts for close to 60% of GDP – must shift gears, and the three rate cuts this year – altogether 100bps – will make borrowing significantly cheaper. RBI and govt will hope this stimulates demand for housing and automobiles, key industries that employ millions and have significant multiplier effects. While inflation has finally cooled to a comfortable level, creating room for rate cuts, some experts have diagnosed sluggish demand and slowing price rise as a sign of weak incomes. Post-Covid, the housing and automobile markets became premiumised. Small hatchbacks, once the base of the car market, are now a tiny segment. Likewise, smaller apartments fell off builders' plans. Essentially, mid-income earners got priced out. Cheaper credit could change that, and if private demand booms, so will private capex. That's the hope. But if these rate cuts don't translate into growth, govt will seriously need to look at the problem of income stagnation. RBI has already changed its policy stance from accommodative to neutral, signalling a reluctance to make more cuts this year. Facebook Twitter Linkedin Email This piece appeared as an editorial opinion in the print edition of The Times of India.
Time of India
37 minutes ago
- Time of India
Piyush Jain case: Court dismisses accused application, hearing on July 4
1 2 Kanpur: Special chief judicial magistrate Kanpur Nagar Kumud Lata Tripathi on Friday dismissed the application of accused Piyush Jain and Sunil A Hirani in the much-publicised case in which the GST department had recovered approximately Rs 195 crore cash and gold bars weighing around 22 kgs. The DGGI Ahmedabad had raided perfume trader Piyush Jain's houses situated at Anandpuri Kanpur and Kannauj on December 21, 2021. The department had seized Rs 196 crore in cash and 23 kg gold from his possession. Piyush was ultimately arrested on December 27, 2021. He was bailed out after about eight months. The prosecution had made thirteen other persons accused apart from Piyush. All are currently on bail. Both accused had previously applied for the case diary and other documents as per provisions of the Cr PC which was strongly opposed by the prosecution. According to Ambrish Tandon, special prosecutor for DGGI Ahmedabad, the accused applicants pressed their demand on last date while he submitted that CD/DVD containing 479 to 11,455 pages of the charge sheet had already been provided to the counsel of Sunil A Hirani and the same had also been provided to Piyush Jain on October 20, 2023. Both had acknowledged receipt on the order sheet of the case file present in the court. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Hamburg: GEERS sucht 700 Testhörer für Hörgeräte ohne Zuzahlung GEERS Undo He stated that since copies of the documents had already been furnished by the court, it appears that this application had been filed only to delay proceedings. Therefore, the court should dismiss the application of Hirani and Piyush Jain. The court, which had reserved its order on the previous date, delivered the verdict and dismissed the accused applicants' plea. The magistrate in her order observed that since all documents had already been delivered by the prosecution to the accused, there was no reason to deliver them again. The application was viewed as a tactic to delay the trial and thus was dismissed. The next date was fixed as July 4 for hearing. Tandon informed that the prosecution would now present its evidence. Get the latest lifestyle updates on Times of India, along with Eid wishes , messages , and quotes !
