Will ₹500 Notes Be Banned from ATMs? Govt Clarifies

₹500 Note: The government has clearly stated that ₹500 notes will not be discontinued and will continue to be available in ATMs.

Recently, there were rumors on social media and in some reports claiming that ₹500 notes would no longer be available from ATMs by the end of 2025.

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However, the Finance Ministry has officially rejected these claims in Parliament.

It clarified that the Reserve Bank of India (RBI) only wants to increase the availability of smaller notes like ₹100 and ₹200 to make everyday transactions easier for the public.

What Are the New Guidelines?

RBI issued a circular on 28 April 2025, directing all banks and white label ATM operators:

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  • By 30 September 2025: 75% of ATMs must have at least one cassette that dispenses ₹100 or ₹200 notes.

  • By 31 March 2026: 90% of ATMs should follow this rule.

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This means that while the number of smaller notes in ATMs will increase, ₹500 notes will still be available alongside them.

Why Is This Change Important?

Smaller notes are very useful for daily expenses like buying vegetables, paying taxi fares, or shopping.

Often, when only ₹500 notes come out of an ATM, people face difficulty in getting change. RBI wants to solve this issue by ensuring that ATMs provide small notes, making it easier for both customers and shopkeepers.

What Was Discussed in Parliament?

In the Rajya Sabha, MPs Yerram Venkat Subba Reddy and Milind Deora asked whether the government plans to ban ₹500 notes or stop giving them through ATMs.

In reply, the Finance Ministry clearly stated that there is no such proposal. ₹500 notes will continue to be available, along with ₹100 and ₹200 notes, in ATMs.

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