In India 500 rupee note once again Discussions about about have intensified. It is being claimed in social media and news that RBI is going to shut down 500 notes And the government is promoting small notes. Many people are upset thinking whether demonetisation like 2016 is going to happen again?
Will 500 notes really stop? And if this is the case then why is the government promoting small notes? It has become necessary for every common man to know the answers to these questions, because it can directly affect his everyday life and transactions.
In this article we will understand in detail that After all, RBI’s real order regarding 500 note What is, what the experts say on this, what is the intention of the government behind promoting small notes, and what is the truth of this whole matter. Also, you will tell you how much truth is there in the news going viral and what you should do at this time.
New RBI guidelines
Recently, RBI (Reserve Bank of India) has directed banks to upload 100 and 200 rupee notes in 75% ATMs in the country by September 2025 and provide these small notes in 90% ATMs by March 2026. After this order, the discussion started whether 500 notes are also being closed like 2000 notes? However, there is no mention of closing the 500 note in any RBI’s circular or official statement.
RBI orders regarding 500 notes and small notes
| Main point | Description |
|---|---|
| Whose order is | Reserve Bank of India (RBI) |
| Date of order | April 2025 |
| What has been said | 100 and 200 notes in 75% ATMs by September 2025, 90% by March 2026 |
| Referring to shutting down 500 notes | No |
| Why boost small notes | Open money facility to general public, promotes digital transactions |
| What happened to 2000 note | Out of already out of trend |
| Experts’ opinion | Trying to reduce the dependence of 500 note |
| What is going on on social media | Rumors of closure of 500 notes |
Government’s intention behind promoting small notes
- Availability of small notes: Often people had problems with open money after getting 500 or 2000 notes from ATMs. Small shopkeepers and common people do not have open money instead of big notes, which caused problems in transactions.
- Promotion of digital transactions: Digital transactions have increased rapidly in India. RBI is preparing to bring digital currency (e-couple), which will reduce the need for cash.
- Cost of printing note: The government has to spend more in printing big notes. This expenditure can be reduced by excessive use of small notes.
- Ban on black money: The hoarding of big notes makes the transaction of black money easier. This makes it difficult with small notes.
What do experts say?
According to banking expert Ashwini Rana, the main objective of RBI is to increase the dependence of 100 and 200 rupee notes in cash emanating from ATMs and reduce the dependence of a 500 rupee note. However, he also said that it has not been decided to shut down the 500 note, but it can happen in future.
“At present, 500 notes are not closing, but this may happen in the coming time. The government wants to promote small notes so that the common people are easy to transaction.” – Ashwini Rana, Banking Expert
Viral rumors on social media
Many posts are going viral on social media, in which it is being claimed that RBI has decided to close the 500 note. It is also being said in these posts that only 100 and 200 notes will be released from 90% ATMs in the coming time, so that 500 notes will gradually be out of circulation. But the truth is that RBI has instructed only to increase the availability of small notes, no order has been given to close the 500 note.
Analysis of RBI’s new order regarding 500 note
Key points of order
- RBI has instructed banks to increase the number of 100 and 200 rupee notes in ATMs.
- By September 2025, 75% ATMs are to be provided in ATMs and 90% ATMs by March 2026 to provide small notes.
- The objective of the order is to provide open money to the general public.
- There is no direct order to close the 500 note.
Benefits of small notes
- Small shopkeepers and common people will not have a holiday money problem.
- Transactions in the market will be easier.
- Digital transactions will be promoted.
- The cost of printing notes will decrease.
- The hoarding of black money will be banned.
Can 500 notes be closed?
- At present, RBI has not taken any decision to close the 500 note.
- Experts believe that efforts are definitely being made to reduce the dependence of 500 note.
- Like the 2000 note, the 500 note can also be gradually excluded from circulation, but there is no such order yet.
Why is the government promoting small notes?
The aim of the government and RBI is that the general public can get small notes easily, so that there is no problem in transactions. It has often been seen that after getting 500 or 2000 notes from ATMs, people used to have problems with open money. Small shopkeepers do not have open money, causing problems to both the customer and the shopkeeper. Excessive use of small notes will remove this problem to a great extent.
In addition, small notes are also needed to promote digital transactions. When people do transactions of small amounts, small notes are more convenient. The government wants people to move towards digital transactions, which reduces cash and transparency in the economy.
Confusion in general public over 500 note
- Viral posts on social media have spread fear and confusion among the people.
- Many people are thinking that demonetisation like 2016 will be resumed.
- Some people are thinking of depositing or replacing 500 notes.
- There is a possibility of increasing congestion between banks and ATMs.
The truth is that RBI has just instructed to increase the availability of small notes, there is no order to discontinue 500 notes.
Fact check of viral news on 500 note
- There is no talk of discontinuing 500 rupee notes anywhere in the RBI circular.
- The objective of the order is only to increase the availability of small notes.
- 500 notes are in trend as before.
- Viral posts and news are misleading.
What will be the effect if 500 notes are closed?
- There may be problems in the transaction in the market.
- There will be trouble in large transactions.
- People may have to go to bank and change notes.
- There may be shortage of cash.
- Digital transactions and use of small notes will increase.
Government and RBI strategy
- Gradually reduce the dependence of large notes.
- Promote small notes and digital transactions.
- Ban black money and fake notes.
- Bringing transparency in the economy.
What should the general public do?
- Do not pay attention to rumors.
- 500 notes are currently completely valid.
- Increase the use of small notes.
- Avoid congestion in bank or ATM.
- Trust the official information of the RBI or the government.
Expert advice
- Do not hoist 500 notes.
- Increase the use of small notes.
- Adopt digital transactions.
- Avoid rumors and keep the right information.
conclusion
- The RBI has not ordered the closure of 500 notes.
- To increase the availability of small notes, the number of 100 and 200 notes in ATMs is being increased.
- The news going on social media is misleading.
- The general public does not need to panic.
- The aim of the government and the RBI is to make transactions easier and promote Digital India.
Disclaimer: The RBI has not ordered the closure of 500 notes. The news and posts going viral on social media are misleading. The real instruction of RBI is just to increase the availability of small notes, so that the common people do not have problems with open money. 500 notes are still completely valid and in trend. If there is any change in future, official information will be given by the government and RBI. At present, there is no need to panic about the 500 note or pay attention to rumors.
