In most countries, banks do not issue 500 bills. This is because high-denomination bills are typically associated with money laundering, tax evasion, and other illegal activities. In many cases, governments have chosen to discontinue the printing and circulation of large bills in an effort to combat these activities.
For example, in the United States, the highest denomination bill currently in circulation is the $100 bill. The $500 bill was last printed in 1945 and was officially discontinued in 1969. Similarly, the $1,000, $5,000, and $10,000 bills were last printed in 1945 and discontinued in 1969. These bills are still legal tender and can be exchanged for their face value at banks or other financial institutions, but they are rare and highly sought after by collectors.
In some countries, such as Japan and Switzerland, high-denomination bills are still in circulation. For example, the highest denomination bill in Japan is the 10,000 yen note, which is worth roughly $90 USD. In Switzerland, the highest denomination bill is the 1,000 Swiss franc note, which is worth roughly $1,080 USD.
However, even in countries where high-denomination bills are still in circulation, they are typically not widely used in everyday transactions. Instead, they are more commonly used for large purchases or to store wealth. For example, wealthy individuals may use high-denomination bills to store large amounts of cash in a safe deposit box or to make large purchases without the need for electronic payment methods.
Overall, while banks may still exchange high-denomination bills for their face value, they do not typically issue or circulate them due to their association with illegal activities. The use of large bills is becoming increasingly rare as governments around the world take steps to combat money laundering and other forms of financial crime.