Did RBI ask banks to disburse Rs 100 and Rs 200 notes and not Rs.500 notes in ATMs? Fact Check

A message is being shared on social media with a claim that the Reserve Bank f India has all banks to stop disbursing Rs. 500 notes by September 30 from ATMs, with a target of 90% by March 31, 2026.. The post can be accessed on X.com here:

RBI has asked all banks to stop
disbursing 500₹ notes by 30 sep
from ATM.
Target is 75% of all banks
BANKS ATM & then 90% ATM
by 31 Mar26.
ATM going forward will only
disburse only 200₹ and
100₹ notes only.#Public torture is Real

— A K Mandhan (@A_K_Mandhan) June 3, 2025

The claim reads:”RBI has asked all banks to stop disbursing 500₹ notes by 30 sep from ATM. Target is 75% of all banks. BANKS ATM & then 90% ATM by 31 Mar26. ATM going forward will only disburse only 200₹ and 100₹ notes only. #Public torture is Real.”

It can be seen here and here.

FACT-CHECK

When Digiteye India received a request, a quick search revealed that there was no such move by RBI to eventually replace the Rs.500 note as suggested. The Reserve Bank of India on April 28, 2025 issued a circular asking banks to ensure that ATMs dispense Rs 100 or Rs 200 denomination notes to enhance the availability of these currency notes to the public. And, the guideline is clearly to keep less denominated notes along with Rs.500 notes. Banks have been instructed to implement the direction in a phased manner as seen below:

“As part of an endeavour towards enhancing public access to frequently used denominations of banknotes, it has been decided that all banks and White Label ATM Operators (WLAOs) shall ensure that their ATMs dispense Rs 100 and Rs 200 denomination banknotes on a regular basis…,” the Reserve Bank of India (RBI) said in its circular.

According to the circular, 75 per cent of all ATMs shall dispense either Rs 100 or Rs 200 denomination banknotes from at least one cassette. By March 31, 2026, 90 per cent of all ATMs shall dispense either Rs 100 or Rs 200 denomination banknotes from at least one cassette. Hence, he claim suggesting that Rs.500 notes are being withdrawn gradually from ATMs is false.

Claim: Banks asked not to disburse Rs 500 notes in ATMs by RBI.
Conclusion: Misleading. Banks have been asked by RBI to compulsorily dispense both Rs.100 and Rs.200 notes along with Rs.500 notes in a phased manner. It doesn’t direct banks not to disburse Rs.500 notes as claimed.
Rating: Misleading —