'Untrue': RBI has not asked banks to stop disbursing Rs 500 notes from ATMs by Sep, says govt

New Delhi, Aug 3 (IANS) The government on Sunday termed "untrue" a WhatsApp message that claimed the Reserve Bank of India (RBI) had ordered banks to cease issuing Rs 500 notes via ATMs by September 30, saying no such instruction has been issued.

The deceptive message also claims that 90 per cent of ATMs will cease issuing Rs 500 notes by March 31, 2026, and 75 per cent will do so by September 30.

Additionally, it advises people to begin "liquidating" their Rs 500 notes and implies that only Rs 100 and Rs 200 notes will be accessible through ATMs in the future.

Responding to the message, the government media arm Press Information Bureau's Fact Check unit said that the RBI has not issued any such instructions, and Rs 500 notes are still legal tender.

In a post on X, it clarified that the widely shared claim is untrue and advised people not to believe such false information.

"Has RBI asked banks to stop disbursing Rs 500 notes from ATMs by September 2025? A message falsely claiming exactly this is spreading on #WhatsApp. #PIBFactCheck, No such instruction has been issued by the @RBI, Rs 500 notes will continue to be legal tender," the post said.

The Fact Check Unit stressed the significance of confirming any financial updates from official sources and cautioned that such messages are intended to deceive.

"Don’t fall for such misinformation. Always verify news from official sources before believing or sharing it!" it stated.

A similar claim went viral on social media last month. The previous message, which was widely shared on WhatsApp as well, implied that the RBI had a phased plan to stop issuing Rs 500 notes to ATMs by 2026.

PIB Fact Check had denied the allegation at that time as well, claiming that no such directive had been issued.

Authorities have emphasised the importance of exercising caution when consuming and disseminating unconfirmed information. Users are advised to rely only on reliable sources, such as the RBI's official communications or PIB's fact-checking handle, for any updates regarding currency, as misinformation about it has become more prevalent.

--IANS

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