500 Note Update : Throughout the country, demonetization has taken place from time to time. The Reserve Bank of India (RBI) continues to make decisions regarding issuing new currency notes and withdrawing old ones. Recently, a major update has surfaced concerning the ₹500 note. Several media reports citing RBI suggest that the ₹500 note might soon be discontinued. Let’s understand the complete truth behind this news below.
The Reserve Bank of India (RBI) is the institution responsible for all monetary decisions in the country. It determines how many new notes will be introduced and which denominations will be withdrawn from circulation, in coordination with the Central Government. The last major step taken by the government in this regard was the withdrawal of the ₹2000 note.
Big Update on ₹500 Notes
According to media reports, the RBI has issued instructions that by September 2025, 75% of ATMs in the country should be filled with ₹100 and ₹200 notes. Experts believe that RBI wants to reduce dependence on the ₹500 denomination. This raises an important question — will the ₹500 note, like the ₹2000 note, also be withdrawn from circulation? Let’s understand the full situation.
More Circulation of ₹100 and ₹200 Notes
According to banking expert and “Voice of Banking” founder Ashwini Rana, the RBI aims to increase the circulation of ₹100 and ₹200 notes through ATMs and reduce dependence on ₹500 notes. Reducing reliance on larger denominations generally signals the intention to phase them out — just as the ₹2000 note was withdrawn in 2023.
Will the ₹500 Note Be Discontinued?
As per Ashwini Rana, the RBI may be planning to phase out the ₹500 note in a similar way it discontinued the ₹2000 denomination. This has caused concern among the public, as many are now asking whether the ₹500 note will indeed be banned. While only the RBI can confirm this officially, current signs point in that direction. According to Rana, even if it doesn’t happen immediately, it could very well occur in the coming year.
Could the ₹500 Note Actually Be Banned?
Banking expert Ashwini Rana further explained that digital transactions in India have increased significantly, and the RBI is preparing to promote digital currency through e-RUPI. In such a scenario, the central bank is also aiming to reduce the cost of printing paper currency. Printing physical notes involves a considerable expense for the government.
Therefore, the RBI intends to increase the circulation of smaller denominations in ATMs and reduce the dependency on higher-value notes. Based on these factors, it appears that these are the key reasons behind the speculation that the ₹500 note might eventually be withdrawn. However, no official announcement has yet been made regarding the discontinuation of the ₹500 note.
Could History Repeat Itself Like the ₹2000 Note?
Experts suggest that, similar to the ₹2000 note, the RBI may gradually phase out the ₹500 note before making any official declaration. This would help increase the circulation of smaller denominations. They also warn that those hoarding ₹500 notes should be cautious — otherwise, the situation could mirror what happened when the ₹2000 notes were withdrawn.
