A viral social media message claiming that ₹500 notes will stop being dispensed from ATMs after September 30, 2025, has been officially debunked by the Government of India and the Reserve Bank of India (RBI). The false claim had created panic and confusion among the public, but authorities have now made it clear — ₹500 notes are here to stay.
The clarification came on August 5, 2025, during a session in the Rajya Sabha, when MPs Yerram Venkata Subba Reddy and Milind Murli Deora questioned whether the RBI had issued instructions to stop dispensing ₹500 notes from ATMs after September 30. In response, the government categorically stated there is no such proposal, and ₹500 notes will continue to be distributed in ATMs alongside ₹100 and ₹200 notes.
The confusion arose from RBI’s recent directive to banks and white-label ATM operators to ensure that at least 75% of ATMs provide ₹100 and ₹200 notes by September 30, 2025, with the target increasing to 90% by March 31, 2026. This measure is intended to improve access to smaller denominations — not to phase out ₹500 notes.
Officials have urged citizens to ignore fake social media forwards and rely only on verified updates from the RBI or the government. They also reassured that any major change to currency policy will be communicated officially well in advance.
