RBI orders banks to ensure ATMs dispense more ₹100 and ₹200 notes for easier public access

In a move aimed at improving the availability of lower denomination currency for the public, the Reserve Bank of India (RBI) has directed all banks and White Label ATM Operators (WLAOs) to ensure that their ATMs regularly dispense ₹100 and ₹200 notes.

According to a notification issued on 29 April 2025, the RBI has laid out clear milestones for implementation. By September 30, 2025, at least 75% of all ATMs must be configured to dispense either ₹100 or ₹200 denomination notes from at least one cassette. This threshold will rise further, with 90% of ATMs required to comply by March 31, 2026.

The directive applies to all banks and WLAOs operating in the country. The central bank emphasised that the move is part of its ongoing efforts to enhance public access to commonly used denominations, which are in high demand for daily transactions, especially in rural and semi-urban areas.

Industry experts say the measure is expected to ease challenges faced by citizens, particularly in accessing change for smaller purchases. Many ATMs currently prioritise high-value notes such as ₹500, leading to a shortage of smaller denominations in circulation. Rotation of smaller denomination currency notes will also help in curbing black money.

Banks will now be required to reconfigure their ATM cassettes and upgrade software where necessary to meet the RBI’s requirements. Failure to comply within the given timelines may attract supervisory action.

This is not the first time the RBI has nudged banks on this issue. In past years, the central bank has issued similar advisories, but this latest move marks a firmer push with defined targets and timelines.

The RBI is expected to monitor compliance closely over the coming months as part of its broader efforts to promote efficient currency distribution across the country.