Rs 500 Note Ban! Is RBI planning to ban Rs. 500 currency notes? RBI’s New ATM Directive Explained
New Delhi, 3rd June 2025: A news is circulating on social media that RBi may soon ban the Rs. 500 currency note, like the previous ₹2000 note ban. However, the Reserve Bank of India (RBI) has not issued any such directive. Also, the central government made no announcements of withdrawing ₹500 notes from circulation. The ₹500 note remains legal tender, and all valid throughout the country.
According to the latest information from the RBI, banks and ATM operators are directed to keep a smooth supply of ₹100 and ₹200 notes in ATMs. This directive is issued after RBI received multiple customer complaints that ATMs are dispensing only ₹500 notes, making it difficult for people to get smaller change for day-to-day transactions.
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As per the RBI’s recent circular, at least 75% of ATMs across India should have a sufficient supply of ₹100 and ₹200 notes by September 30, 2025. RBI takes this initiative to improve the circulation of low-value denominations widely circulated among citizens.
In short, there is no ban on ₹500 notes, they are valid in India. RBI advised customers not to focus on fake news on social media platforms.
