In recent weeks, rumors of a potential phase-out of the ₹500 currency note by 2026 have gone viral across social media platforms and YouTube. The frenzy began after a YouTube video uploaded by the channel CAPITAL TV (capitaltvind) claimed that the Reserve Bank of India (RBI) is planning to discontinue the ₹500 note in a phased manner, culminating in a complete withdrawal by March 2026.
This claim has sparked widespread confusion among the public, with the video garnering over 4.5 lakh views, and several social media users forwarding the misinformation without verifying its authenticity. However, the Press Information Bureau (PIB) and the RBI have now stepped in to categorically dismiss the claim.
What Sparked the Rumor About the ₹500 Currency Note Ban?
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The viral video, exceeding 11 minutes in length, was posted by CAPITAL TV on YouTube.
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The video alleges that the RBI has initiated a phased plan to withdraw ₹500 notes, with a final phase-out date set for March 2026.
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Multiple social media posts amplified the video’s claim, further deepening the confusion.
Fact Check: No Plan to Withdraw ₹500 Notes, Confirms PIB and RBI
The PIB, the government's official fact-checking unit, responded swiftly to the viral claim. In a post on X (formerly Twitter), the bureau clarified:
“Is the ₹500 note set to be phased out by 2026? A YouTube video on the YT Channel 'CAPITAL TV' (capitaltvind) falsely claims that the RBI will discontinue the circulation of ₹500 notes by March 2026. RBI has made NO such announcement. ₹500 notes have NOT been discontinued and remain legal tender. Don’t fall for such misinformation. Always verify news from official sources before believing or sharing it!”
The RBI has not issued any policy directive, press release, or circular indicating any move to stop the circulation of ₹500 currency notes.
Why the Confusion? A Look at the April 2025 RBI Circular
While the viral video is misleading and not supported by facts, it may have been misinterpreted from a genuine RBI circular released in April 2025. This circular directs banks and White Label ATM Operators (WLAOs) to increase the circulation of smaller denomination notes — specifically ₹100 and ₹200 notes — via ATMs.
Key Highlights of the RBI Circular:
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The move aims to enhance public access to frequently used, lower-denomination banknotes for daily transactions.
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By September 30, 2025, 75% of ATMs must be configured to dispense ₹100 or ₹200 notes from at least one cassette.
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By March 31, 2026, this requirement must be met by 90% of ATMs.
Important Note:
This directive is solely to improve the availability of small denomination notes and has no relation to the discontinuation of ₹500 notes.
Is the ₹500 note set to be phased out by 2026? 🤔
A #YouTube video on the YT Channel 'CAPITAL TV' (capitaltvind) falsely claims that the RBI will discontinue the circulation of ₹500 notes by March 2026.#PIBFactCheck
✔️@RBI has made NO such announcement.
✔️₹500 notes have… pic.twitter.com/NeJdcc72z2— PIB Fact Check (@PIBFactCheck) June 3, 2025
RBI Voice Call Scam: Another Ongoing Misinformation Threat
Alongside the misinformation about ₹500 notes, another scam has emerged in the form of fraudulent voice calls pretending to be from the RBI.
How the Scam Works:
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Victims receive a pre-recorded voicemail warning that their bank account will be blocked due to credit card fraud.
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The call urges them to press a number for more details.
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This is a phishing scam designed to steal personal and financial information.
PIB Warning:
The PIB’s Fact Check Unit has confirmed this as a scam and advises the public to ignore such calls, report them, and avoid sharing sensitive details over the phone.
What Should Citizens Do Amid Such Misinformation?
The spread of fake news, especially relating to currency and monetary policy, can lead to public panic and economic disruptions. Therefore, it is crucial for citizens to:
✅ Verify news through official RBI announcements or PIB Fact Check.
✅ Follow trusted and verified news outlets for government updates.
✅ Report fake content found on YouTube, WhatsApp, and other social platforms.
❌ Do not forward or share unverified claims — doing so amplifies false information.
❌ Avoid relying solely on YouTube or social media videos for financial updates.
₹500 Notes Remain Legal Tender – No Withdrawal Planned
Despite the viral rumors and misleading videos, the Reserve Bank of India has made no announcement about discontinuing ₹500 currency notes by 2026 or any other year. The claim is entirely false, as verified by the Press Information Bureau, RBI’s own website, and fact-check investigations.
The ₹500 note remains fully valid legal tender across India. Citizens are strongly advised to trust only official channels for updates on currency-related matters and report any misinformation to curb its spread.
With inputs from agencies
Image Source: Multiple agencies
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