New Delhi: The Reserve Bank of India has directed banks and White Label ATM Operators (WLAOs) to ensure greater availability of ₹100 and ₹200 denomination notes through ATMs, aiming to improve access to smaller currency for everyday transactions.
In a circular issued on Monday, the RBI said, “As part of an endeavour towards enhancing public access to frequently used denominations of banknotes, it has been decided that all banks and White Label ATM Operators (WLAOs) shall ensure that their ATMs dispense ₹100 and ₹200 denomination banknotes on a regular basis….”
As part of this direction, banks and WLAOs have been given clear timelines. By 30 September 2025, at least 75% of all ATMs must be able to dispense either ₹100 or ₹200 notes from at least one cassette. The target rises to 90% by 31 March 2026.
Currently, most ATMs primarily dispense ₹500 notes, often making it inconvenient for users who require change for smaller payments. The RBI's move is expected to reduce this gap and make lower denomination notes more accessible across cities, towns, and rural areas.
The directive comes just weeks after the central bank raised ATM usage charges. From 1 May, customers will pay ₹23 per ATM transaction, up by ₹2, while the interchange fee has also been increased to ₹19 for financial transactions and ₹7 for non-financial ones. Goods and Services Tax will be levied additionally on these charges.
BI Bureau
