The Reserve Bank of India (RBI) has issued a significant directive to banks and ATM service providers to ensure better availability of lower denomination currency notes, particularly ₹100 and ₹200, at ATMs across the country. This move aims to ease the inconvenience faced by customers who are often forced to withdraw higher denominations, like ₹500, even when they need smaller amounts.
Improved Access to Small Denominations
Recognizing the need for accessible smaller currency notes for daily transactions, the RBI has asked all banks to increase the circulation of ₹100 and ₹200 notes in ATMs. The directive specifically urges banks to prioritize the loading of these denominations, ensuring that citizens can access the cash they actually need.
White Label ATMs Also Included
The new guidelines also extend to White Label ATMs (WLAs), which are operated by private financial or non-banking companies instead of traditional banks. These WLAs, which are widespread across India, function just like regular bank ATMs and are expected to comply with the same standards.
Phased Implementation Timeline
By 30th September 2025: At least 75% of ATMs must have one cassette (a tray that holds notes) filled with either ₹100 or ₹200 notes.
By 31st March 2026: This requirement increases to 90% of ATMs.
Each cassette typically holds around 2,500 notes, and most ATMs are equipped with four to six cassettes. This phased rollout gives banks and ATM operators adequate time to upgrade and comply with the new norms.
A Step Toward Customer-Centric Banking
By mandating this change, the RBI aims to enhance customer convenience, reduce the reliance on higher denomination notes, and improve the efficiency of ATM cash withdrawals.