If you’re tired of receiving only Rs 500 notes from ATMs, there’s good news ahead. The Reserve Bank of India (RBI) has issued a fresh directive to ensure easier access to smaller currency. Now, ATMs across the country will prioritize dispensing Rs 100 and Rs 200 denomination notes.
Why the Change?
Customers have frequently complained that ATMs largely dispense Rs 500 notes, creating trouble when they need smaller change. This becomes especially problematic at local shops or street vendors where exact change is necessary. Even shopkeepers sometimes refuse Rs 500 notes or insist on UPI payments due to this issue.
What Has RBI Announced?
- All banks and white-label ATM operators must ensure the availability of Rs 100 and Rs 200 notes in their ATMs.
- By March 31, 2026, at least 90% of all ATMs should be dispensing these smaller notes.
- Banks must prioritize stocking their machines with lower denomination notes for public convenience.
What Are the Benefits for the Public?
This initiative aims to make daily transactions smoother for everyone:
- Convenient access to smaller denominations for daily use
- Simplified cash transactions where digital payment isn’t an option
- Reduced dependency on high-value notes like Rs 500
What Are White Label ATMs?
White Label ATMs (WLAs) are ATMs operated by non-bank companies such as India1 ATM, Tata Indicash, and Hitachi. These too must comply with RBI’s order and ensure availability of Rs 100 and Rs 200 notes.
What Must Banks and ATM Operators Do?
To meet RBI’s deadline, all banks and ATM providers must:
- Reconfigure cash trays in ATMs to accommodate more Rs 100 and Rs 200 notes
- Change cash loading protocols accordingly
- Regularly monitor ATM performance to ensure compliance
This move by RBI is expected to bring much-needed relief to the public, ensuring easier access to small denominations and enhancing the overall cash-handling experience across India.
FAQs
Q. Will ATMs only dispense Rs 100 and Rs 200 notes now?
A. No. Rs 500 notes will still be available, but smaller denominations will be prioritized.
Q. Is this rule effective immediately?
A. RBI has set the deadline as March 31, 2026 for 90% implementation.
Q. Are white-label ATMs included?
A. Yes, all ATMs including those operated by private companies must follow the new rule.
Q. Are Rs 500 notes being removed?
A. No, Rs 500 notes will continue to circulate. This is only about increasing the availability of Rs 100 and Rs 200 notes.
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