RBI To Withdraw Rs 500 Currency Notes? CA’s Claim Goes Viral; Recent Advisory Says…

RBI To Withdraw Rs 500 Currency Notes: Days after Andhra Pradesh CM N. Chandrababu Naidu steered the Centre to withdraw Rs 500 forex notes in a bid to clamp down on corruption, a Chartered Accountant (CA) has now claimed by means of X (previously Twitter) that the RBI has advised all banks to forestall allotting Rs 500 banknotes from ATMs by way of September 30.

The function is to scale back the flow of Rs 500 banknotes from all financial institution ATMs by way of 75% first of all, after which by way of 90% by way of March 31, 2026. Going ahead, ATMs will simplest dispense Rs 200 and Rs 100 notes. It is essential to notice that the Rs 500 banknote is lately the very best denomination forex in flow following the federal government’s withdrawal of Rs 2,000 notes from the marketplace.  However, the 2000 banknotes proceed to be criminal gentle. 

Meanwhile, the Reserve Bank of India (RBI) has mentioned that the whole worth of Rs 2000 banknotes in flow, which was once Rs 3.56 lakh crore on the shut of industrial on May 19, 2023, when the withdrawal of Rs 2000 banknotes was once introduced, has declined to Rs 6,181 crore on the shut of industrial on May 31, 2025. 

Thus, 98.26% of the Rs 2000 banknotes in flow as on May 19, 2023, has since been returned. RBI had introduced the withdrawal of Rs 2000 denomination banknotes from flow on May 19, 2023.  

Fact Check: 

As a part of efforts to strengthen public get admission to to frequently used banknote denominations, RBI had made up our minds that each one banks and White Label ATM Operators (WLAOs) should make sure their ATMs frequently dispense Rs 100 and Rs 200 denomination banknotes. By September 30, 2025, 75% of all ATMs are required to dispense both Rs 100 or Rs 200 banknotes from a minimum of one cassette available in the market. Notably, the objective will build up to 90% by way of March 31, 2026, making sure better availability of those denominations to the general public. 

Implication

If the choice of Rs 100 and Rs 200 notes in flow will increase and those denominations are dispensed extra ceaselessly from ATMs, then the choice of Rs 500 banknotes in flow might indisputably lower. However, there’s no reliable affirmation from the RBI in regards to the withdrawal of Rs 500 notes, so they continue to be criminal gentle available in the market.