Will 500 Rupee Notes Be Phased Out by 2026? Government Issues Clear and Firm Denial

National News: Recently, a video has gone viral on social media, which claims that 500 rupee notes will start closing from March 2025 and will be completely discontinued by 2026. This news remains a matter of much discussion among the people and many people have considered it true. Due to this video, memories of the 2016 demonetization have been refreshed in the minds of people, when the government suddenly declared 500 and 1000 rupee notes.

Truth of viral video

The video was uploaded on 2 June by a YouTube channel named Capital TV. The video claimed that 500 rupee notes will be shut down gradually from March 2025 and their use will be completely closed after 2026. The video quoted sources as saying that the Reserve Bank of India (RBI) has released any official information in this regard. This video has been viewed more than five lakh times so far and is becoming increasingly viral.

Government and RBI denied

The Government of India has described this news as completely wrong and baseless. The Press Information Department (PIB) fact-check team has posted on social media and made it clear that 500 rupee notes are valid and there is no order to exclude them from circulation. Also, the Reserve Bank of India has also rejected any such announcement. RBI has reported that 500 rupee notes are legal currency and people can use them completely.

What is the real situation?

In 2016, Prime Minister Narendra Modi's government declared 500 and 1000 rupee notes invalid to deal with corruption, black money and fake demonetisation. At that time, the sudden demonetisation decision created a huge earthquake in the country. But now the situation is completely different. The Reserve Bank has continued to issue 500 rupee notes under its current note printing policy and will continue in future as well.

Government's appeal to protect against rumors

The Press Information Department (PIB) has requested people not to trust such rumors and do not move it forward. He has also said that only confirm any news from official and reliable sources. This step has been taken to prevent wrong information and confusion in the country.

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

Impact of misinformation

Such wrong news spreading on social media creates anxiety and confusion among the general public. This can affect people's economic behavior and also create unnecessary stress in the banking system. Therefore, being aware and spreading the correct information is the need today.

Wait for government information 

So far, the Government of India or the Reserve Bank of India has not given any order to discontinue or cancel notes of 500 rupee notes. These notes are completely legal currency and are recognized in income, transactions and all other financial activities. So instead of relying on rumors going viral on social media, wait for government information and avoid spreading any news without confirmation.