RBI Clarifies Rules on ₹500 Notes: Stability Amid Rumors

Clarification announcement  
The RBI stepped in after rumors suggested that ₹500 notes might be phased out or restricted. Officials emphasized that the denomination continues to be valid for all transactions, with no hidden ban or recall. The clarification was necessary to calm public anxiety and prevent disruption in commerce.  

Guideline details  
• ₹500 notes remain full legal tender across India  
• No plans for demonetization or withdrawal of the denomination  
• Banks instructed to maintain adequate supply of smaller notes (₹100, ₹200) to improve accessibility  
• Target: 75% of ATMs to dispense smaller denominations by September 2025, rising to 90% by March 2026  
• Citizens advised to ignore rumors and rely on RBI notifications for updates  

Impact  
The clarification reinforces trust in India’s currency system, ensuring stability in daily transactions. By improving access to smaller denominations while retaining ₹500 notes, RBI aims to balance convenience with financial discipline.  

Sources: Economic Times, ADEEG, Cataract India