No Ban on ₹500 Notes in ATMs: Government and RBI Confirm Rumours Are False

New Delhi 11 August 2025: A viral message circulating on social media claiming that ₹500 notes will stop being dispensed by ATMs after September 30, 2025, has sparked confusion and concern among the public. However, the Reserve Bank of India (RBI) and the government have officially debunked these rumours, confirming that ₹500 notes will remain valid and continue to be available in ATMs.

On August 5, 2025, during a session in the Rajya Sabha, Members of Parliament Yerram Venkata Subba Reddy and Milind Murli Deora raised the question regarding the cessation of ₹500 note withdrawals from ATMs by September 30, 2025. In response, the government clarified that there is no such proposal in place, and ₹500 notes will continue to be part of the ATM note mix, alongside ₹100 and ₹200 denominations.

The RBI has issued instructions for banks and white-label ATM operators to ensure that at least 75% of ATMs dispense ₹100 and ₹200 notes by September 30, 2025. This percentage is expected to rise to 90% by March 31, 2026. The intention behind this change is to improve access to smaller denominations, not to eliminate ₹500 notes.

The government and the RBI have reassured the public that there is no cause for concern. ₹500 notes will continue to be legal currency, and if any significant changes are to occur in the future, the public will be informed well in advance.

Citizens are advised to disregard the viral fake messages and continue using ₹500 notes with confidence.