The Reserve Bank of India (RBI) has mandated that all ATMs must dispense ₹100 or ₹200 banknotes from at least one cassette. A phased implementation is planned: 75% of ATMs by September 30, 2025, and 90% by March 31, 2026. This initiative aims to improve accessibility for small cash withdrawals.
Mandatory ₹100 and ₹200 Notes
The RBI has issued a directive to banks and White Label ATM Operators (WLAOs) making it mandatory to provide ₹100 or ₹200 banknotes from at least one cassette in their ATMs. This decision is intended to ensure readily available small denomination notes for customers.
ATMs typically have four cassettes for different denominations. The RBI requires at least one to be dedicated to ₹100 or ₹200 notes.
Deadlines: September 2025 and March 2026
The RBI has outlined a two-phased implementation:
- Phase 1: By September 30, 2025, 75% of ATMs nationwide must dispense ₹100 or ₹200 notes from at least one cassette.
- Phase 2: By March 31, 2026, this arrangement must be implemented in 90% of ATMs.
Prior to this directive, many ATMs only dispensed ₹500 and ₹2000 notes, causing inconvenience to customers making smaller transactions.
Benefits for the Public
The RBI believes that increasing the availability of small denomination notes will make cash transactions more convenient, particularly in rural and semi-urban areas with limited access to digital payments.
Banking experts suggest this decision will improve customer experience and increase the availability of small denomination notes in the market. Small shopkeepers, taxi drivers, vegetable vendors, and customers making everyday cash transactions will directly benefit.
Number of ATMs in India
According to RBI reports, as of March 2024, there were approximately 2.20 lakh bank ATMs and around 36,000 White Label ATMs operational in India. This signifies the wide-ranging impact of this initiative.
Need for Cash Despite Digital Payments
While UPI and other digital payment platforms have expanded rapidly, cash transactions remain the primary option for a significant portion of the population. The RBI emphasizes the necessity of ensuring easy access to small denomination notes to meet the daily needs of the people.
