The Reserve Bank of India (RBI) in 2025 has made a distinct announcement regarding old currency notes particularly the widely circulated denomination of ₹500. The bank has still not taken up the case of discontinuing the ₹500 notes as stated in the misleading social media posts and thus the bills remain as good as money and can be used in any transaction throughout India.
What Sparked the Confusion?
A WhatsApp message went viral saying that the RBI would stop issuing ₹500 notes from ATMs post-September 2025, which had panic among the public at large. On the other hand, the Press Information Bureau (PIB) Fact Check verified that the message is false and misleading. Moreover, the RBI still has not released any official circular or notification indicating the discontinuation of the ₹500 notes.
RBI’s Real Update: ATM Denomination Rules
In what seems to be a conflicting announcement, the RBI has come up with a directive for the ATM operations separating the ₹500 notes from the rest. By the end of this month, September 2025, the banks are supposed to have at least one cassette of ₹100 or ₹200 notes in 75% of the ATMs they manage. The step taken is to facilitate the access of smaller units for daily transactions.
RBI Currency Update Summary Table
| Currency Note | Status in 2025 | RBI Action |
|---|---|---|
| ₹500 | Legal tender | No phase-out, still in circulation |
| ₹100 & ₹200 | Legal tender | Must be available in 75% of ATMs |
| ₹2,000 | Withdrawn from circulation | Can still be exchanged at banks |
| Rumors | Viral on social media | Denied by PIB and RBI |
Final Thoughts
The year 2025 brings a clear and reassuring message from the RBI to the public. The ₹500 notes are still alive and there is no need to rush in exchanging them. It would be wise for the public to depend upon the official sources and not be falling victims to the viral rumors. Starting October expect more ₹100 and ₹200 notes at the ATMs for easier transactions.