RBI Actions on Baghat Urban Co-Operative Bank: Taking regulatory action, the Reserve Bank of India (RBI) has imposed strict restrictions on The Baghat Urban Co-operative Bank Limited, based in Solan, Himachal Pradesh. According to the instructions of the Central Bank, now this bank will neither be able to accept any new deposits nor will be able to issue new loans. Along with this, payment of bank liabilities has also been banned.

What are the instructions of RBI?

RBI said that without prior written permission the bank cannot give any new loan, accept new deposits nor fulfill its financial obligations. This step has been taken after serious financial irregularities came to light during the recent inspection.

According to the report of news agency PTI, considering the current cash position of the bank, RBI has set the withdrawal limit of customers at Rs 10,000. However, RBI has given the relaxation that the bank can use the amount present in the customers’ accounts to adjust their outstanding loans.

What will happen to insurance coverage?

RBI also clarified that the bank’s depositors have insurance protection under the Deposit Insurance and Credit Guarantee Corporation (DICGC). According to this provision, each depositor will get an insured amount up to a maximum of ₹ 5 lakh, which will be decided as per the status and rights of his account.

The central bank also clarified that these restrictions do not amount to canceling the bank’s license. The bank will be able to continue its operations with limited conditions. This step of RBI has been taken with the aim of stabilizing the financial condition of the bank and protecting the interests of depositors.

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For the last few days, a post on social media platform X is becoming increasingly viral. In this post, it is being claimed that the Reserve Bank of India (RBI) has decided to remove the 500 rupee note from circulation. In the viral post, it has also been said that only 100 and 200 rupee notes will come out of 90 percent ATMs in the coming time.

What is in viral post?

The viral post includes a screenshot claiming that RBI has directed banks to increase the number of 100 and 200 rupee notes in their ATMs.

Bye Bye 500 Rupees Currency Notes

75% ATMS Dispense Rs 100 and Rs 200 Notes by September, 90% by March Next Year: RBI to Banks

– Woke Eminent (@WokePandemic) April 29, 2025

Posted users say that this means that the 500 rupee note is being gradually removed from circulation.

Goodbye to 500 rupee notes

100 and 200 rupee notes will be released from 75% ATMs by September, 90% ATMs will be released by March next year: RBI asked banks

– Sandeep Gupta (@ghoomhaikahi) April 29, 2025

What does RBI’s real instruction say?

Our team investigated the matter and found that RBI has actually issued a instruction to banks. However, there is no mention of closing the 500 rupee note in this instruction. The real instruction of RBI is only that banks should increase the availability of 100 and 200 rupee notes in their ATMs.

What is the purpose of RBI?

This step of RBI is to ensure the availability of small notes to the general public. Often people have difficulty in breaking them after extracting 500 or 2000 rupee notes from ATMs. Small shopkeepers and ordinary people often do not open in exchange for such large notes. RBI wants people to get small notes directly from ATMs, so that they do not face trouble.

Is a 500 rupee note being closed?

No, RBI has not given any indication to close the 500 rupee note in any official document. This note will be in trend as before. The things done in the viral post are completely wrong and they have nothing to do with the actual instructions of RBI.

That is, this news, which is going viral on social media, is completely wrong. RBI has not taken any decision to close the 500 rupee note. Banks have been instructed only to increase the number of 100 and 200 rupee notes in ATMs so that small notes can be easily available to the general public.

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