The Reserve Bank of India has today issued a circular to all commercial and cooperative banks clarifying that all Rs. 500 notes continue to be legal tender and should, therefore, be accepted for all transactions.

The Reserve Bank has also asked banks to instruct all their branches to accept all Rs. 500 notes across their counters and eschew creating avoidable panic in the minds of the public.

The Reserve Bank circular has been issued following some confusion about Rs. 500 notes when some bank branches desisted from accepting these notes or insisted upon customers to tender these notes after listing their numbers.

Alpana Killawala
General Manager

Press Release : 1997-98/1229