A viral YouTube video recently sparked panic by claiming that Rs 500 currency notes would be discontinued by March 2026. The claim, however, has been dismissed by the Indian government, which has assured citizens that there are no plans to withdraw the note and that it remains legal tender. The clarification came amid growing confusion fueled by the misleading content shared widely on social media.
YouTube Video Fuels Rumours
The claim originated from a video posted by a channel named ‘Capital TV’ on June 2. In the 12-minute-long video, the channel alleged that the Reserve Bank of India (RBI) would begin phasing out Rs 500 notes starting March next year. The video quickly gained traction, amassing over five lakh views, and led to widespread speculation and concern among the public.
Reacting swiftly, the Press Information Bureau (PIB) Fact Check unit stepped in to clarify the situation. In a post on X (formerly Twitter), the official fact-checking body of the Indian government categorically stated, “Rs 500 notes have NOT been discontinued and remain legal tender.” The PIB further urged the public to avoid falling for misinformation and always verify such news through official government sources before believing or sharing it.
Rs 500 Notes Continue to Hold Value
The current series of Rs 500 currency notes were introduced by the RBI in November 2016 following the demonetisation announcement made by Prime Minister Narendra Modi. On November 8, 2016, the government withdrew the old Rs 500 and Rs 1,000 notes from circulation to curb corruption and eliminate counterfeit currency. In place of the old notes, new Rs 500 notes with updated features and a design theme showcasing the Red Fort were issued.
The Rs 500 note continues to be in circulation and is fully valid for all transactions. It features 17 languages on the reverse side, highlighting India’s linguistic diversity. The note is stone grey in colour and measures 66 mm by 150 mm.
While the government did withdraw the Rs 2,000 note from circulation in May 2023, those notes still remain legal tender, adding to the confusion around the recent Rs 500 rumour. However, the Ministry has now made it clear that no such move is planned for the Rs 500 denomination.
