In recent days, a video uploaded on YouTube has sparked confusion and concern among the public. The video, posted by a channel named ‘Capital TV’ on June 2, 2025, claimed that the Rs 500 currency notes would begin phasing out from March next year and would be discontinued by 2026. The nearly 12-minute-long video quickly went viral, amassing over five lakh views, and led to widespread panic.
Official Clarification: No Plans to Withdraw Rs 500 Notes
Responding to the rumors, the Government of India and the Reserve Bank of India (RBI) have issued a strong rebuttal to the claims made in the video. The Press Information Bureau (PIB), India’s official fact-checking division, took to social media to issue a clarification.
In a post on X (formerly Twitter), the PIB Fact Check division confirmed:
“Rs 500 notes have NOT been discontinued and remain legal tender.”
The agency further advised the public not to fall for such fake news or unverified reports, and reminded citizens to rely on information only from official and credible sources.
Public Advisory Against Misinformation
To prevent further spread of the rumor, the PIB also emphasized the importance of cross-verifying viral claims, especially those circulated on digital platforms and YouTube. They warned:
“Always verify news from official sources before believing or sharing it.”
This serves as a critical reminder in today’s age of rapid digital misinformation, where unauthenticated videos can cause nationwide panic.
Background: The Rs 500 Note and Its History
Reintroduced After 2016 Demonetisation
The Rs 500 notes currently in circulation were introduced post the 2016 demonetisation exercise. On November 8, 2016, Prime Minister Narendra Modi announced the demonetisation of the old Rs 500 and Rs 1,000 notes. This drastic measure was undertaken as a strategic move to:
- Combat black money
- Tackle corruption
- Eliminate counterfeit currency from the Indian economy
Just two days later, new currency notes of Rs 500 and Rs 2,000 denominations were introduced by the Reserve Bank of India.
Design, Size, and Security Features
The new Rs 500 note was redesigned to include improved security features and a new look. Some of the key attributes are:
- Size: 66 mm x 150 mm
- Color: Stone Grey
- Theme: ‘Indian Heritage Site – Red Fort’ featured on the reverse side
- Language Panel: Denomination printed in 17 Indian languages – including English, Hindi, Assamese, Bengali, Gujarati, Kannada, Kashmiri, Konkani, Malayalam, Marathi, Nepali, Odia, Punjabi, Sanskrit, Tamil, Telugu, and Urdu
These design changes reflected both cultural identity and enhanced security to prevent duplication.
What Happened to Rs 2,000 Notes?
While Rs 500 notes continue in circulation, the Rs 2,000 notes, which were also introduced after demonetisation in 2016, have undergone a different fate.
In May 2023, the RBI announced that Rs 2,000 notes would be withdrawn from circulation. However, it is crucial to note that:
- They remain legal tender, and
- People can still use them or deposit them in banks
This strategic step by the RBI was a part of regular currency management and not part of any demonetisation plan.
Conclusion: No Truth to Rs 500 Discontinuation Rumors
To conclude, there is no truth in the viral claim that Rs 500 currency notes will be discontinued by 2026. The government and RBI have made it absolutely clear that:
- Rs 500 notes remain valid
- No announcement has been made regarding their withdrawal
Citizens are advised to stay informed through official sources like RBI and PIB, and not fall for unverified digital content or rumors spread through social media platforms.
The episode serves as a reminder of the importance of fact-checking in the digital age and the need for media literacy to prevent misinformation from causing unnecessary alarm among the public.
