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₹500 Note Ban Rumours Go Viral! RBI and Government Issue Clarification After Misleading Social Media Claims

Indiaemploymentnews | May 8, 2026 5:40 PM CST

Viral Fake Video: News regarding the discontinuation of ₹500 notes is spreading rapidly across social media, creating confusion among the public. Now, PIB Fact Check has provided a major update, clarifying the truth behind this claim.

500 Notes Discontinued: A specific claim has been going viral on social media platforms in recent days. A Reel posted by the Instagram channel ‘insightswithnicky’ asserted that the Reserve Bank of India (RBI) is soon going to discontinue the ₹500 currency notes. Following this claim, a state of confusion has arisen among the public; while some have taken the claim to be true, many others are eager to know whether the ₹500 notes are, in fact, going to be discontinued.

What is the Claim?

The viral posts and Reels make the following claims:

The RBI is going to discontinue the ₹500 notes.
The ₹500 notes could be phased out by March 2026.
ATMs will stop dispensing ₹500 notes.

This claim is being shared rapidly across social media, thereby spreading confusion among the public.

What is the Truth Behind the Claim?

PIB Fact Check has categorically stated that this claim is completely fake. The RBI has made no announcement whatsoever regarding the discontinuation of ₹500 notes. Furthermore, it clarified that ₹500 notes remain fully legal tender, and there are no plans to stop dispensing them through ATMs. PIB has appealed to the public not to place their trust in such fake news. According to the government's fact-checking body, the news currently circulating on social media is merely a rumor.

What Should People Do?

If you possess ₹500 notes, there is absolutely no need to panic.

Important Points to Remember:

₹500 notes remain fully valid at this time.
There is no need to exchange them.
Do not place your trust in any rumors. Always verify financial information only from the RBI or government sources.