In the past few weeks, social media platforms and WhatsApp groups have been flooded with claims suggesting that ₹500 notes would no longer be issued through ATMs after September 2025. Many people believed that this was the beginning of another currency phase-out, which created confusion among bank customers across India. With cash still playing a major role in daily transactions, any rumour about ₹500 notes can easily trigger worry. This is why it is important to understand what RBI’s New Guideline on ₹500 Note actually says.
Why the Rumour Started
The confusion began after a viral message claimed that banks were instructed to stop dispensing ₹500 notes and move to only ₹100 and ₹200 denominations. The message also suggested that ATMs would completely stop issuing ₹500 notes after September 30, 2025. Since the message spread quickly, many people started withdrawing cash in fear, leading to unnecessary panic.
RBI’s Official Clarification
The Reserve Bank of India and the Press Information Bureau stepped in to address the situation. Both authorities confirmed that there is no plan to withdraw ₹500 notes and that the viral message is completely fake. According to RBI’s New Guideline on ₹500 Note, the currency remains legal tender, and people can continue using it for all transactions without worry.
What the guideline actually focuses on is improving access to smaller denominations. Banks and White Label ATM Operators have been asked to ensure that at least one ATM cassette contains ₹100 or ₹200 notes. This step is meant to help people who depend on smaller denominations for daily needs, not to remove ₹500 notes from circulation.
| Topic | Actual RBI Stand |
|---|---|
| ₹500 note validity | Still legal tender |
| ATM withdrawal | ₹500 notes will continue |
| Aim of guideline | Better access to small denominations |
What This Means for Customers
For regular users, nothing changes. You can still withdraw and use ₹500 notes as usual. The focus on smaller denominations simply ensures better convenience, especially in markets, public transport and rural areas. The most important takeaway is that RBI’s New Guideline on ₹500 Note does not indicate any demonetisation or note recall.
As with any financial update, it is wise to rely only on verified information. Staying informed helps avoid panic and protects people from misinformation that spreads easily online.