Will the ₹500 note be banned? Indian government clarifies as reports emerge over ‘demonitisation’ 2026 claims
Indian government issued a clarification and fact check post on social media after a YouTube video went viral spreading misinformation over a potential upcoming demonetisation of ₹500 banknotes.
The Government of India, in its social media fact-checking handle on platform X, clarified that the claims about an upcoming alleged ‘demonetisation’ in March 2026 were false and that they were an attempt to spread misinformation among the masses through social media platforms.
What were the claims?
According to the official PIBFactCheck post released on Tuesday, 3 June 2025, a video went viral on social media in which a news anchor from the YouTube channel ‘Capital TV’ claimed that India is set to discontinue the circulation of ₹500 banknotes effective March 2026.
“A #YouTube video on the YT Channel ‘CAPITAL TV’ (capitaltvind) falsely claims that the RBI will discontinue the circulation of ₹500 notes by March 2026,” according to the PIBFactCheck announcement post on platform X.
What does the Indian Government say?
Calling out this social media claim, the Indian government issued an official “Fact Check” in which they said that the nation's central bank, the Reserve Bank of India (RBI), has made no such announcements about any potential or upcoming demonetisation move.
The government also assured the people of the nation that the ₹500 banknotes “have not been discontinued” and continue to serve as a “legal tender” form of the official Indian currency.
The government also warned people to stay alert to “fake news” and videos circulated on social media platforms and not to believe anything unless it comes from official sources like the RBI.
“Don’t fall for such misinformation. Always verify news from official sources before believing or sharing it!” said the Indian government, warning people against similar misinformation circulating on social media platforms.
New ₹20 Banknotes
In May 2025, the Reserve Bank of India (RBI) announced that it would soon release new ₹20 banknotes with Governor Sanjay Malhotra's signature on them.
“The Reserve Bank of India will shortly issue ₹20 denomination Banknotes in Mahatma Gandhi (New) Series bearing the signature of Shri Sanjay Malhotra, Governor. The design of these notes is similar in all respects to ₹20 banknotes in Mahatma Gandhi (New) Series,” said the RBI.
RBI also disclosed that the ₹20 notes will be similar in all other aspects, including design, to the new series of notes circulating in the nation, except for the new governor's signature.
The central bank also assured the people of the nation that all the banknotes which contain the denomination of ₹20 issued by the RBI in the past will continue to hold legal tender in India, according to the official release.