Will ₹500 Notes Be Stopped From ATMs After September 2025? RBI Says No, Clears Rumours With Official Statement

If you’ve come across viral messages or social media posts claiming that ₹500 notes will no longer be available from ATMs after September 2025, you are not alone.

This rumour has spread widely, sowing confusion and concern among millions of Indians who rely on this high-value denomination for day-to-day cash needs. Here’s the truth according to official government and RBI statements.

What Triggered This Rumour?

In mid-2025, a WhatsApp message and several social media posts claimed that the Reserve Bank of India (RBI) had directed all banks to stop dispensing ₹500 notes from ATMs by September 30, 2025.

Some posts further claimed that:

• 75% of ATMs would stop disbursing ₹500 notes by September 2025,

• By March 31, 2026, 90% would only dispense ₹100 and ₹200 notes.

The viral message urged people to start liquidating their ₹500 notes in advance, implying the denomination was about to be phased out.

The Official Response: RBI and Government Break Their Silence

Thankfully, both the Reserve Bank of India and the Government of India acted quickly to quash this misinformation. Here are the key facts:

• No Decision to Withdraw ₹500 Notes: In a written reply to the Rajya Sabha (India’s upper house of Parliament) on August 5, 2025, the Minister of State for Finance, Pankaj Chaudhary, stated there is no plan to stop the supply of ₹500 notes.

• ATMs will continue to dispense them alongside ₹100 and ₹200 notes.

• PIB Fact Check: India’s Press Information Bureau (PIB) Fact Check unit publicly debunked the viral claim as false. They clarified on social media: “No such instruction has been issued by the RBI.

• ₹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!”

• What the RBI Actually Ordered: In April 2025, the RBI instructed all banks and White Label ATM Operators to ensure that at least 75% of ATMs dispense ₹100 or ₹200 notes by September 30, 2025, and 90% by March 31, 2026.

• These guidelines aim to improve public access to smaller denominations—not to phase out or reduce the importance of ₹500 notes. ₹500 notes remain a key part of the ATM mix and overall cash circulation.

Why Push for More ₹100 and ₹200 Notes in ATMs?

The real reason behind the RBI’s new rule is to enhance the availability of smaller denominations, which are more convenient for small, everyday cash transactions.

In many areas—especially in rural and semi-urban India—getting change for large notes has been a persistent issue. By stocking a higher percentage of ATMs with ₹100 and ₹200 notes, the RBI hopes to ease daily transactions and support the public need for “change.”

What Does It Mean for You?

• Continue Using ₹500 Notes: There is absolutely no need to panic or to “liquidate” your ₹500 notes. You can continue withdrawing, spending, depositing, and saving ₹500 notes as before.

• They remain legal tender and will continue to be a part of your cash transactions.

• Beware of Viral Hoaxes: Official agencies repeatedly urge citizens to verify financial news via authentic channels, such as RBI press releases, government statements, and PIB Fact Check.

• Don’t trust or forward messages unless you have checked with such sources.

• Your ATM Experience Will Improve: You may notice that it becomes much easier to find ₹100 and ₹200 notes at ATMs, which can make small purchases and daily expenses simpler, without the hassle of struggling for change.

Frequently Asked Questions

Is the government really phasing out ₹500 notes?

No, the government has categorically denied any such move. The supply and availability of ₹500 notes will continue as usual.

Why are there changes in ATM notes dispensation?

The RBI wants to ensure easier access to smaller denominations like ₹100 and ₹200 for better convenience in daily transactions across the country.

Will my ₹500 notes become worthless after September 2025?

Absolutely not. ₹500 notes will continue to be legal tender and remain in active circulation.

Is there any need to exchange or deposit my ₹500 notes before September 2025?

No, there is no such requirement.

Key Takeaways

• ₹500 notes will not be stopped from ATMs after September 2025.

• No directive has been issued by the RBI or government to discontinue or withdraw ₹500 notes.

• Official clarification states clearly that the denomination will remain in circulation and available at ATMs.

• Any message claiming otherwise is misinformation.

Final Advice

Stay calm and continue using your ₹500 notes for ATM withdrawals and daily spending. Follow verified government sources for all currency and banking updates. Ignore rumours and help others by sharing this authenticated information.