RBI Issues New Guidelines on ₹10, ₹20, ₹100, and ₹500 Notes: All Key Facts Explained
The Reserve Bank of India (RBI) has released new guidelines aimed at making cash transactions smoother and ensuring public access to lower-denomination currency notes. The move primarily focuses on increasing the circulation and availability of ₹100 and ₹200 notes across all ATMs, while clarifying the continued validity of ₹500 notes amid persistent rumors.
What’s New in RBI Guidelines?
RBI’s latest directive mandates that all banks and White Label ATM (WLA) operators must ensure that at least 75% of ATMs dispense ₹100 or ₹200 notes by September 30, 2025. This proportion is set to increase to 90% by March 31, 2026. The goal is to address public inconvenience caused by the scarcity of small denomination notes in everyday cash transactions. Notably, ₹10 and ₹20 notes will also remain in regular circulation.
No Ban on ₹500 Notes
The government and RBI have repeatedly clarified that ₹500 notes remain legal tender. There is no proposal or plan to ban or withdraw ₹500 notes from ATMs or circulation. Viral social media posts and WhatsApp messages claiming otherwise have been officially debunked by government fact-checkers. Both the finance ministry and RBI have assured parliament and the general public that ₹500 notes will continue to be dispensed through ATMs alongside ₹100 and ₹200 notes.
What Remains Valid and What Changes?
- All existing and new notes of ₹10, ₹20, ₹100, and ₹500 are valid for transactions.
- Only the RBI Governor’s signature will change on new notes; designs and features remain the same.
- The Mahatma Gandhi (New Series) continues to be the standard for all newly issued notes, with the new Governor’s signature for notes printed after 2024.
- ATM cash withdrawals will become easier for small change, as the RBI’s rules require increased distribution of smaller denominations, especially ₹100 and ₹200 notes.
- There have been no changes to the designs or security features of any denomination, other than the Governor’s signature.
Key Takeaways for the Public
- There is no need to rush to exchange or deposit existing ₹10, ₹20, ₹100, or ₹500 notes.
- All denominations, old and new, remain legal and valid for daily transactions.
- Ignore rumors and rely only on notifications from official government or RBI sources.
- Banks have been instructed to improve the supply of smaller notes, making it easier for people to get change and conduct everyday purchases.
Summary Table of Notable Changes
| Feature/Change | Details |
|---|---|
| Main Objective | Improve availability of small denominations |
| Status of ₹500 Notes | Fully valid, not discontinued |
| Small Notes in ATMs | 75% of ATMs by Sept 2025; 90% by Mar 2026 to offer ₹100/₹200 notes |
| Series of New Notes | Mahatma Gandhi (New Series), with updated Governor’s signature |
| Validity of Old Notes | All old and new notes remain legal tender |
| Rumor Status | All withdrawal/ban rumors about ₹500 notes officially denied by RBI and PIB Fact Check |
| Design/Security Feature Change | No change except for Governor’s signature |
These new guidelines are part of RBI’s effort to make cash-based commerce smoother and reduce inconvenience around getting change and making small-value purchases. The RBI and the government urge the public to ignore social media rumors and confirm any policy updates on official portals only.
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