ATMs must provide Rs.100 and Rs.200 Notes for convenience of Customers, RBI issues new guidelines to Banks

The RBI has issued new guidelines to banks to improve convenience of customers using ATM services. The Reserve Bank of India (RBI) has asked all banks to make sure that their ATMs regularly dispense ₹100 and ₹200 notes. This move is aimed at making it easier for people to get smaller denomination currency when they need cash.

Right now, in some of the Bank ATMs, only higher denomination notes are provides such as Rs.500 but Rs.100 and Rs.200 notes are not provided. This causes a lot of inconvenience for customers. After withdrawing cash from ATM, customers have to look for cash exchange. Some customers even said that they have to approach shops and request shopkeepers to provide loose cash in exchange of Rs.500 notes. This causes a lot of inconvenience.

Now, RBI has asked Banks to solve this issue. RBI released an official circular on Monday to improve public access to frequently used banknotes. The directive is not just for banks but also for White Label ATM Operators (WLAOs), who manage ATMs independently.

RBI has also set deadlines for implementation of these guidelines. Banks need to follow these guidelines by following dates:

• By September 30, 2025, at least 75% of all ATMs must dispense either ₹100 or ₹200 notes from at least one cassette (the part of the ATM that holds cash).
• By March 31, 2026, this number must go up to 90% of all ATMs.

Banks and ATM operators have been told to implement this change in a phased manner, meaning they can gradually adjust their machines over time to meet the new requirements. What you think of this – do let us know in the comment section below.

• Download RBI CIRCULAR on Note Dispensation PDF