No proposal to stop supply of Rs 500 denomination banknotes from ATMs: Government
The government on Tuesday reiterated that there is no proposal to stop the supply of Rs 500 denomination banknotes, and ATMs will continue disbursing Rs 500 alongside Rs 100 and Rs 200.
Minister of State for Finance, Pankaj Chaudhary, told the Rajya Sabha, in a written reply, that the printing of banknotes of a particular denomination is decided by the government in consultation with the Reserve Bank of India (RBI) to maintain the desired denomination mix for facilitating the transactional demands of the public.
"The RBI has informed that as part of their endeavour to enhance public access to frequently used denominations of banknotes, a circular titled ‘Dispensation of Rs 100 and Rs 200 Denomination Banknotes through ATMs’ has been issued on April 28, 2025, directing all banks and White Label ATM Operators (WLAOs) to ensure that their ATMs dispense Rs 100 and Rs 200 denomination banknotes on a regular basis," the minister said.
Around 75 per cent of all ATMs shall dispense either Rs 100 or Rs 200 denomination banknotes from at least one cassette by September 30.
"Moreover, about 90 per cent of all ATMs shall dispense either Rs 100 or Rs 200 denomination banknotes from at least one cassette by March 31, 2026," the minister added.
On Sunday, the government termed "untrue" a WhatsApp message that claimed the RBI had ordered banks to cease issuing Rs 500 notes via ATMs by September 30, saying no such instruction has been issued.
The deceptive message also claimed that 90 per cent of ATMs will cease issuing Rs 500 notes by March 31, 2026, and 75 per cent will do so by September 30. Additionally, it advised people to begin "liquidating" their Rs 500 notes and implied that only Rs 100 and Rs 200 notes will be accessible through ATMs in the future.
Responding to the message, Press Information Bureau's Fact Check unit said that the RBI has not issued any such instructions, and Rs 500 notes are still legal tender. In a post on X, it said that the widely shared claim is untrue and advised people not to believe such false information.
The Fact Check Unit stressed the significance of confirming any financial updates from official sources and cautioned that such messages are intended to deceive.
