500 Rupees Note Update : RBI to Discontinue Rs 500 Notes, Government Clarifies.
500 Rupees Note Update : RBI, i.e., the Reserve Bank of India, takes decisions related to money matters in the country. How many new currency notes will be issued in India and which notes will be withdrawn from circulation—these decisions are taken jointly by the RBI and the central government. The last time, the government withdrew the ₹2000 note from circulation.
Big Update on 500 Rupees Note
According to media reports, the RBI has instructed that by December 2025, 75 percent of ATMs across the country should be loaded with ₹100 and ₹200 notes. Experts have shared their opinions on this move. According to experts, the RBI wants to reduce dependence on ₹500 notes. Now the big question arises: will the ₹500 note also be withdrawn from circulation like the ₹2000 note? Let’s understand the full matter.
₹100 and ₹200 Notes Will Be Used More
According to banking expert and founder of Voice of Banking, Ashwini Rana, the RBI wants to increase the availability of ₹100 and ₹200 notes through ATMs and reduce dependence on ₹500 notes for cash withdrawals. When the RBI reduces reliance on higher-denomination notes, it usually indicates that such notes may be phased out in the future. This is similar to what happened in 2023, when the ₹2000 note was withdrawn from circulation.
Will the ₹500 Note Be Discontinued?
According to Ashwini Rana, just like the ₹2000 note was withdrawn, the RBI is now planning to gradually phase out the ₹500 note as well. After this news surfaced, people have become worried. Everyone is asking the same question—will the ₹500 note be banned? Only the RBI can officially answer this. However, the signs do point in that direction. Ashwini Rana believes that even if it doesn’t happen immediately, it would not be surprising if it happens in the coming years.
Can the ₹500 Note Really Be Discontinued?
Banking expert Ashwini Rana further explained that digital transactions are growing rapidly in India, and the RBI is preparing to introduce a digital currency, the e-Rupee. In such a situation, the Reserve Bank also wants to reduce the cost of printing currency. Printing currency notes involves significant expenses for the government.
Therefore, the RBI wants to increase the circulation of smaller denomination notes through ATMs and reduce people’s dependence on higher-value notes. All these factors suggest that these could be the major reasons behind a possible withdrawal of the ₹500 note. However, as of now, there has been no official announcement regarding the discontinuation of the ₹500 note.
Will It Be Like the ₹2000 Note Situation?
Experts say that before withdrawing the ₹500 note—just like the ₹2000 note—the RBI may gradually reduce its circulation. This would help increase the use of smaller denomination notes across the country. According to experts, people who are hoarding ₹500 notes should remain cautious. The situation should not turn out the same as what happened when the ₹2000 notes were withdrawn.