After the government announced demonetization of Rs 500 and Rs 1000 notes on November 8, 2016, there was panic across the country. People were seen standing in long queues outside banks and ATMs to exchange their old notes. The memories of this incident are still fresh in the minds of people. Now, the discussion regarding demonetization has started once again.
In a post going viral on social media, it is being claimed that the government may ban Rs 500 notes from March 2026. It has also been claimed that Rs 500 notes will also stop being dispensed from ATMs. This viral post has raised questions in the minds of people: Will Rs 500 notes really be removed from circulation? People have started thinking that the government will once again implement demonetization and ban Rs 500 notes.
What is the truth?
The Press Information Bureau (PIB) has refuted claims circulating on social media that the Reserve Bank of India (RBI) will demonetise Rs 500 currency notes by March 2026, terming these reports as false and misleading. This makes it clear that the government is not planning any kind of demonetization. Responding to the claims being made on social media, the fact-checking unit of PIB said that the Reserve Bank has not made any announcement regarding demonetisation of Rs 500 notes. The claim that RBI will stop circulation of Rs 500 notes by March 2026 is false. Therefore, Rs 500 notes are fully valid and will remain in circulation. The government has no plans to close them at present.