Can You Still Exchange Old ₹500 or ₹1,000 Notes? RBI Clears the Rumours

People are again asking banks the same old question. Can the old ₹500 and ₹1,000 notes still be exchanged? Let’s check what the Reserve Bank of India actually said.

Every few months, someone posts online that RBI has allowed people to exchange old 500 and 1000 rupee notes in 2025. Then long queues form outside banks. Same story, different year.

The truth came straight from the RBI’s April 2025 FAQ report on Indian Currency. It said clearly that these notes “stopped being legal tender from midnight of 8 November 2016.” Nothing new was announced.

The Press Information Bureau also issued a fact-check on 30 October 2025, confirming that no such rule or circular exists. According to the RBI Annual Report 2024–25, around ₹10,700 crore worth of old ₹500 and ₹1,000 notes are still out there, unreturned. 

Did RBI Bring Back a New Exchange Window for Old Notes?

The RBI has not reopened any exchange facility. The timeline below shows how the policy ended long ago and why there is no new rule today.
 

These numbers keep reminding us that demonetised notes are history now.

What Do RBI Rules Say About Old ₹500 and ₹1,000 Notes?

The RBI has repeated the same thing many times: these notes can’t be exchanged or deposited anywhere. Only valid, soiled, or damaged legal notes can be replaced under the “Exchange of Notes” policy, not the old ₹500 and ₹1,000 series.
 

This is where most confusion begins, people mistake damaged valid notes for demonetised ones.

Why Are People Still Talking About Old Notes in 2025?

A LoansJagat report titled “RBI to Stop ₹500 Notes in ATMs? Here’s What the Govt Said” created fresh confusion. It talked about new ₹500 notes, not the demonetised ones. But many took it as proof that old notes were coming back.

RBI had only asked banks to refill ATMs with more ₹100 and ₹200 notes in 2024 to improve cash circulation. That move had nothing to do with the old ₹500 or ₹1,000 notes, but the timing made people assume otherwise.

Several bank managers in Delhi and Lucknow mentioned that people still visit branches carrying old ₹500 and ₹1,000 notes, mainly senior citizens who believe they might still be exchanged. The behaviour, they said, stems partly from nostalgia and partly from confusion caused by misleading information.

Conclusion 

The Reserve Bank of India is expected to conduct more public awareness campaigns in 2026 to reduce such misunderstandings.

As of now, the rule remains unchanged. The RBI has clearly stated that old Indian currency notes of ₹500 and ₹1,000 cannot be deposited or exchanged at any bank. The clarification on exchanging demonetised currency notes confirms that there is no facility available for the public. The rules for discontinued notes have remained the same since 2016.

If anyone claims that a new exchange window has opened, it is best to verify the information on the official RBI website. Doing so can save unnecessary travel and disappointment.
 

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LoansJagat Team

‘Simplify Finance for Everyone.’ This is the common goal of our team, as we try to explain any topic with relatable examples. From personal to business finance, managing EMIs to becoming debt-free, we do extensive research on each and every parameter, so you don’t have to. Scroll up and have a look at what 15+ years of experience in the BFSI sector looks like.