In a significant move aimed at enhancing the availability of lower denomination currency, the Reserve Bank of India (RBI) has directed all banks and White Label ATM operators to ensure that at least 75% of ATMs dispense ₹100 or ₹200 notes regularly by September 30, 2025. This threshold will increase further to 90% compliance by March 31, 2026.
Focus on Small Value Currency Circulation
The directive seeks to improve the circulation of small-value banknotes across the country, especially to aid the general public in smaller transactions. The RBI noted that most ATMs today are predominantly loaded with ₹500 notes in all four of their currency cassettes, which limits access to smaller denominations.
Typically, ATM cassettes can hold about 2,000 to 2,500 notes each. To reduce replenishment frequency, banks usually fill all cassettes with ₹500 notes. However, the RBI’s new mandate seeks a shift in this strategy to allow a better mix of denominations.
Operational Challenges Highlighted
Industry participants have flagged logistical and operational hurdles in meeting the RBI’s September deadline. Adjusting ATM loading protocols, increasing vault stock of lower denomination notes, and optimizing ATM software configurations will require significant effort and coordination.
