Fact Check: Rs 500 Star (*) Notes Are Genuine and Legal, Confirms RBI

Social media has long been criticised for being a hotbed of misinformation, and once again, it’s at the centre of a fresh wave of panic. A viral message falsely claims that Rs 500 currency notes marked with a star (*) are fake and should not be accepted. The misinformation has sparked confusion and concern across the country, with many unsure about what to do with such notes already in their possession.

The fake message reads- “500 notes marked * have started circulating in the market. Such note was returned from IndusInd Bank. This is a fake note. Even today received 2-3 notes from a customer but returned it immediately due to attention. The customer also said that this note was given by someone in the morning. Be careful, there has been an increase in the number of people walking around with fake notes in the market. Please circulate this message in other groups & friends & relatives to create awareness in all and remain alert always.”

In response, the Reserve Bank of India (RBI) has issued a clarification, putting all doubts to rest: Rs 500 notes with a star symbol are completely genuine and legal tender. 

The RBI explained that these are replacement notes, issued when a defective note is detected during the printing process. Instead of reprinting the entire serial series, the RBI issues a replacement note with a star (*) in the number panel. These notes have been in circulation since December 2016, and their introduction follows the RBI’s “Star Series” policy outlined in a 2006 press release.

The notes in question are part of the Mahatma Gandhi (New) Series, featuring:

• Inset letter ‘E' in both number panels
• The signature of the then RBI Governor, Dr. Urjit R. Patel
• The year of printing is marked as 2016
• The Swachh Bharat logo is printed on the reverse

The RBI further clarified that packets containing such notes may not be in serial order, but each will contain 100 pieces as usual. Star notes in denominations of Rs 10, Rs 20, Rs 50, and Rs 100 have already been in circulation for years, and the Rs 500 denomination was introduced under the same scheme.

RBI urges the public not to fall for such misleading messages and to rely only on verified sources for currency information.

Read More: Col Purohit Thanks Army, Says Thankful To Court For Justice