Has RBI asked banks to stop disbursing ₹500 notes from ATMs by September? Here’s the truth | Mint

The Government of India, in its official social media account for Fact-checking, shared a post dismissing a message circulating over WhatsApp that claims that the Reserve Bank of India (RBI) has asked banks across the nation to stop disbursing ₹500 notes from ATMs by September 2025. 

The government announced that the country’s central bank has not issued any such information to the banks, and the ₹500 banknotes will continue to remain legal tender backed by the RBI.

“No such instruction has been issued by the @RBI. ₹500 notes will continue to be legal tender,” according to the PIB Fact Check post on the platform X.

The government also warned people to avoid such ‘misinformation’ and requested all social media users to verify news from official sources to check their authenticity before believing or sharing it to others. 

“Don’t fall for such misinformation. Always verify news from official sources before believing or sharing it!” said the government in the post.

What was the ‘Fake’ information?

A social media message has been circulating claiming that the Reserve Bank of India has ordered all banks to “stop disbursing” ₹500 banknotes from all ATMs in the nation by 30 September 2025.

The fake message also requested people to “start liquidating” their current holdings of the ₹500 banknotes, and that going forward, people will be able to only withdraw ₹200 and ₹100 banknotes from the automatic teller machines (ATMs). 

“RBI has asked all banks to stop disbursing 500% notes by 30 Sept 2025 from ATM. Target is 75% of all BANKS ATM & then 90% ATM by 31 Mar 2026. ATM going forward will disburse only ₹200 and ₹100 notes only. So start liquidating the ₹500 notes that you have in hand from now on,” the fake message circulating around the social media platforms.

The Indian government has debunked the authenticity of this post, clearly stating that no such instruction has been given out by the central bank on this development and that the people are trying to spread misinformation. 

RBI to release ₹20 banknotes

According to Mint’s earlier report from May 2025, the RBI is set to release a new set of ₹20 banknotes bearing the signature of the new Governor, Sanjay Malhotra.

However, the central bank also assured the citizens that all the earlier ₹20 banknotes issued by the RBI in the past will continue to hold legal tender in India.

“The Reserve Bank of India will shortly issue ₹20 denomination Banknotes in Mahatma Gandhi (New) Series bearing the signature of Shri Sanjay Malhotra, Governor. The design of these notes is similar in all respects to ₹20 banknotes in Mahatma Gandhi (New) Series,” said the RBI in an official statement on 17 May 2025.