A viral YouTube video recently claimed that the Indian government plans to stop the circulation of Rs 500 notes starting March 2026. However, the Press Information Bureau (PIB) has categorically denied this misinformation, clarifying that the claim is entirely false.
The video, which has garnered over 4.5 lakh views, suggested that the Reserve Bank of India (RBI) intends to phase out Rs 500 currency notes gradually from 2026. This speculation surfaced after the RBI asked banks and ATM operators to increase the availability of smaller denominations, specifically Rs 100 and Rs 200 notes. This directive was issued to alleviate public concerns about the scarcity of smaller currency, not as a step toward discontinuing Rs 500 notes.
Official Clarification From PIB
PIB has firmly stated that there has been no announcement or policy from the RBI regarding the withdrawal of Rs 500 notes. The Rs 500 denomination continues to be valid legal tender and will remain in circulation. The bureau urged citizens to avoid sharing or believing unverified claims, especially those related to government policies or currency matters, as such rumors can cause unnecessary panic.
How To Stay Informed
To avoid falling prey to misinformation, the PIB advises the public to:
- Verify news from official government and RBI sources.
- Refrain from forwarding unverified videos or messages.
- Follow credible news outlets for accurate updates.
- Report fake or misleading content on social media platforms.
Rise In Counterfeit Rs 500 Notes
While the rumor about Rs 500 notes being discontinued is false, the RBI’s annual report highlights a significant increase in counterfeit Rs 500 currency detection. In 2024-25, counterfeit Rs 500 notes detected in the banking system rose by 37.35 per cent year-on-year, reaching 1,17,722 pieces, the highest in six years. Counterfeit Rs 200 notes also increased by 13.9 per cent to 32,600 pieces. Conversely, fake Rs 100 notes detected dropped by nearly 23 per cent to 51,069 pieces.
