The Reserve Bank of India has issued renewed clarification regarding old ₹500 and ₹1000 currency notes, aiming to clear persistent confusion among the public. Even years after demonetisation, misinformation continues to circulate, making it important for citizens to clearly understand the legal status of these old notes and the rules that apply to them in 2025.
The RBI has reiterated its official position to prevent financial misunderstandings, fraud attempts, and unnecessary panic related to old currency notes that are no longer part of regular circulation.
Status of Old ₹500 and ₹1000 Notes
The RBI has clearly stated that old ₹500 and ₹1000 notes that were demonetised earlier are no longer legal tender. These notes cannot be used for payments, deposits, or exchanges under any circumstances. Any possession or attempted use of these demonetised notes does not carry monetary value.
No Exchange or Deposit Facility Available
The central bank has confirmed that there is no active window for exchanging or depositing old ₹500 and ₹1000 notes. All special exchange facilities that were temporarily allowed after demonetisation have long been closed. Claims suggesting reopening of such facilities are incorrect.
| Currency Note Type | Current RBI Status |
|---|---|
| Old ₹500 Note (Pre-2016) | Not legal tender |
| Old ₹1000 Note | Not legal tender |
| New ₹500 Note | Fully valid |
| Bank Exchange Facility | Closed |
| Use in Transactions | Not permitted |
Difference Between Old and New ₹500 Notes
It is important to distinguish between the old ₹500 notes issued before demonetisation and the redesigned ₹500 notes currently in circulation. The new ₹500 notes are fully valid legal tender and are widely accepted for all transactions, banking purposes, and ATM withdrawals.
RBI Warning Against False Claims
The RBI has cautioned citizens against falling for rumours, agents, or intermediaries claiming they can convert old notes into valid currency. Such claims are false and may lead to financial loss or legal trouble. The central bank has advised relying only on official information.
Why RBI Keeps Issuing Clarifications
Despite repeated announcements, confusion persists due to misleading messages shared on social platforms. The RBI continues to issue clarifications to protect citizens from fraud and to maintain confidence in the currency system.
What Citizens Should Do
Citizens holding old demonetised notes should understand that these notes no longer have monetary value. Only currently valid currency issued by the RBI should be used for transactions and savings.
Conclusion: The RBI has once again made it clear that old ₹500 and ₹1000 notes remain invalid and unusable. There is no exchange facility, no extension, and no exception. Only the new ₹500 notes currently in circulation are legally valid.
Disclaimer: This article is intended for general informational purposes only. Currency rules and legal tender status are governed solely by official RBI notifications. Readers should rely on formal RBI announcements for any future updates or changes.
