New Delhi— The government on Tuesday clarified that there is no proposal to stop the supply of Rs 500 denomination banknotes, and automated teller machines (ATMs) will continue dispensing Rs 500 notes along with Rs 100 and Rs 200 denominations.
In a written reply to a question in the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary stated that the Reserve Bank of India (RBI) has not recommended any discontinuation of Rs 500 notes.
RBI Aims to Broaden Public Access to Lower Denomination Notes
Chaudhary informed the House that the RBI issued a circular on April 28, 2025, titled “Dispensation of Rs 100 and Rs 200 denomination banknotes through ATMs”, instructing all banks and White Label ATM Operators (WLAOs) to ensure the regular availability of Rs 100 and Rs 200 notes through at least one cassette in ATMs.
As per RBI’s implementation milestones:
By September 30, 2025, 75% of all ATMs are expected to dispense either Rs 100 or Rs 200 notes from at least one cassette.
By March 31, 2026, this number will increase to 90% of ATMs.
The move aims to improve public access to smaller denominations while maintaining the current flow of Rs 500 notes.
Crackdown on Investment Frauds, Money Laundering and MLM Scams
In response to another question, Chaudhary highlighted steps taken by financial regulators to curb investment-related frauds, particularly in the securities and crypto markets.
He said the Securities and Exchange Board of India (SEBI) took up 76 cases from April 2020 to March 2025. During the last financial year alone, SEBI recovered Rs 949.43 crore through disgorgement, a process where illegally obtained gains are returned.
Frauds and cheating, he reiterated, are punishable under Indian law, and several central agencies are working to detect and act against such financial offences.
Action by CBDT and ED on Fraud-Related Cases
The Central Board of Direct Taxes (CBDT) identified nine cases in the last five years, primarily involving multi-level marketing (MLM) scams.
The Enforcement Directorate (ED) initiated around 220 cases related to money laundering under the Prevention of Money Laundering Act (PMLA) between January 1, 2020, and July 30, 2025.
Complaints Pouring In on SACHET Portal
The RBI’s SACHET portal, which tracks illegal deposit-taking schemes, received:
3,454 complaints from April 2020 to March 2025 related to non-repayment of funds from various investment schemes.
1,531 complaints related to MLM, direct selling, and Ponzi schemes.
Chaudhary noted that while crypto assets remain unregulated in India, complaints involving unauthorised deposit collection and fraud continue to rise, necessitating greater awareness and regulatory vigilance.
