Recent viral posts on social media falsely claimed that the Reserve Bank of India (RBI) would withdraw all paper currency notes by June 30, 2026, replacing them with plastic currency. These claims caused widespread confusion and even panic, echoing the sentiment of the 2016 demonetisation.
The government has unequivocally dismissed these viral claims as “completely fake.” Through an official post on X (formerly Twitter), the government clarified that the RBI has made no announcement regarding the phasing out of paper currency or its replacement with plastic notes by the specified date. The public is advised to disregard unverified information and consult the official RBI website for accurate details.
RBI Governor Addresses Polymer Notes
Following a Monetary Policy Committee meeting on June 5, 2026, RBI Governor Sanjay Malhotra addressed the topic of polymer notes. He stated that the introduction of polymer notes is “under consideration” and that the RBI is “examining the pros and cons.” Malhotra emphasized that this initiative is still at a preliminary stage, and no final decision has been made.
Current Banknote Status
According to the RBI's official website, current Indian banknotes are made from 100% cotton. The standard procedure when a new design or type of note is introduced is for both old and new notes to circulate concurrently for a period. Older notes are then gradually withdrawn from circulation as they become unfit for reissue, rather than through an abrupt ban.
In conclusion, the viral claim about a nationwide paper note ban by June 30, 2026, has been officially denied by PIB Fact Check. While the RBI is exploring polymer notes, this is a separate, preliminary discussion with no immediate plans for implementation or a ban on existing paper currency.