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Will ATMs stop dispensing Rs 500 notes? Govt clears the air on viral claim
Rumour vs reality
The message suggests that the Reserve Bank of India (RBI) plans to phase out Rs 500 notes, the most commonly used denomination in the country, according to the Reserve Bank of India's Annual Report for 2024-25. It shares 40.9 per cent of total volume and 86 per cent of total value of circularted notes. But according to PIB Fact Check, the claim made in viral Whatsapp message is 'false and misleading'.
'No such instruction has been issued by RBI. Rs 500 notes will continue to be legal tender. Don't fall for such misinformation. Always verify news from official sources before believing or sharing it,' said PIB (Press Information Bureau) on X.
What RBI has actually announced
A recent RBI circular talked about improving availability of smaller currency denominations like Rs 100 and Rs 200.
The RBI has asked banks and white label ATM Operators to ensure ATMs regularly dispense Rs 100 and Rs 200 notes. By September 30, at least 75 per cent of ATMs must have one cassette loaded with Rs 100 or Rs 200 notes.
That should increase to 90 per cent of ATMs by March 31 next year to address complaints about the unavailability of small change in daily transactions.
Verify information
The RBI has made no announcement about discontinuing Rs 500 notes. Officials advise citizens to rely on the RBI's website and PIB Fact Check for updates to avoid falling for fake forwards on social media.
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