Synopsis : The RBI has mandated banks and ATM operators to ensure wider availability of ₹100 and ₹200 notes, with 75% ATMs complying by September 2025 and 90% by March 2026. This move aims to ease small transactions and improve currency accessibility.
RBI Sets Deadlines to Boost ₹100 and ₹200 Note Availability via ATMs
In a push to improve the accessibility of smaller currency denominations, the Reserve Bank of India (RBI) has issued a directive requiring banks and White Label ATM Operators (WLAOs) to ensure their ATMs dispense ₹100 and ₹200 notes regularly.
According to a circular released on Monday, 75% of all ATMs must dispense either ₹100 or ₹200 notes from at least one cassette by September 30, 2025. The compliance requirement rises to 90% by March 31, 2026, indicating a phased implementation plan aimed at increasing the availability of frequently used banknotes for the public.
This move addresses a common public concern — the difficulty in obtaining smaller denominations during ATM withdrawals, which often only offer ₹500 notes. The change is expected to make small-value transactions more convenient, particularly in semi-urban and rural areas.
Meanwhile, in a separate update, the ATM usage fee has been hiked. Starting May 1, the transaction fee at ATMs will be ₹23 per withdrawal, up from ₹21, while the interchange fee has been increased to ₹19 for financial transactions. An additional GST will be applied on these fees.
This initiative is part of a broader effort to streamline the cash economy, ensure better currency distribution, and improve consumer convenience across banking touchpoints.
Disclaimer : This article is for general informational purposes only and should not be considered financial or banking advice. Please consult with your bank or financial advisor for specific queries or guidance.
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