New Delhi, India – In a significant move aimed at enhancing accessibility to lower denomination banknotes, the Reserve Bank of India (RBI) has issued a directive to banks and White Label ATM Operators (WLAOs) to ensure regular dispensation of ₹100 and ₹200 denomination notes through ATMs. This new rule is expected to improve transactional convenience for the public and strengthen currency distribution across the country.
As per the RBI notification, all ATMs will need to comply with two key milestones:
- By September 30, 2025: At least 75% of ATMs must dispense either ₹100 or ₹200 denomination banknotes from at least one cassette.
- By March 31, 2026: This requirement will increase to 90% of all ATMs.
The move is part of the RBI’s broader strategy to streamline access to lower denomination currency, which is vital for daily retail and personal transactions. These denominations are among the most used in everyday commerce, especially in rural and semi-urban areas.
Background: Why the Focus on ₹100 and ₹200 Notes?
The ₹200 note was first introduced by the RBI in 2017 to address the gap between the ₹100 and ₹500 denominations. The introduction was aimed at simplifying transactions and reducing dependency on higher-value notes for small purchases.
In its statement, the RBI said that this directive aligns with its ongoing commitment to ensure that frequently used currency denominations remain accessible to the common public through convenient channels like ATMs.
“The introduction of ₹200 notes is expected to facilitate smoother exchange transactions and provide a complete denomination structure for the general public,” the RBI noted.
The central bank acknowledged that while ₹200 notes are still not as widely circulated as other denominations, production is being ramped up at currency printing presses. Over time, the availability of these notes is expected to increase significantly as distribution expands through regular banking channels.
Implementation: What Banks and ATM Operators Need to Do
To meet the compliance deadlines, banks and WLAOs will be required to reconfigure their ATM cassettes to include at least one dedicated to ₹100 or ₹200 notes. This recalibration may involve logistical and technical adjustments but is seen as necessary for ensuring uniform access to these essential denominations.
The RBI’s directive is being viewed as a positive and necessary reform, especially for consumers who often struggle to obtain change for small-value transactions. This move could particularly benefit areas where high-denomination notes dominate due to ATM configuration and limited bank access.
Conclusion
The RBI’s proactive approach signals a focus on inclusive financial infrastructure, aiming to make everyday transactions smoother and more accessible for all citizens. With clear milestones and a phased implementation strategy, this directive is set to significantly improve the circulation and availability of lower denomination notes across India.
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