RBI Mandates ATMs to Dispense Rs 100 and Rs 200 Notes, Sets September 30 Deadline for Banks

The Reserve Bank of India (RBI) has set firm targets for banks to improve the availability of smaller currency notes. By September 30, 2025, at least 75% of a bank's ATMs must be configured to dispense Rs 100 and Rs 200 notes. Soon, getting Rs 100 and Rs 200 notes from ATMs will be a lot easier, thanks to new rules aimed at improving everyday cash access for everyone.

Trying to get smaller notes from an ATM often ends in disappointment with Rs 500 or Rs 2,000 bills when all you need is change like 100 Rs and 200 Rs for a cab or small purchase. It is a common hassle for many, and now the RBI is taking steps to solve it by making Rs 100 and Rs 200 notes more easily available through ATMs.

Why RBI Has Ordered ATMs To Always Dispense Rs 100 and Rs 200 notes?

RBI has identified a persistent shortfall of Rs 100 and Rs 200 notes in ATMs across the country. This scarcity has created difficulties, especially for everyday purchases, where only higher denomination notes are dispensed. Imagine needing just Rs 50 but having no option other than to withdraw Rs 500. The issue is particularly acute in smaller towns and rural areas, where access to lower-value currency is already limited.

RBI has issued this new order to improve the availability of smaller denomination notes such as Rs 100 and Rs 200 across the country. The aim is to ensure a more balanced distribution of currency, catering to the daily needs of people, especially in rural and semi-urban areas where such notes are often in short supply.

This directive is also part of the RBI's broader push for greater financial inclusion, helping individuals manage their finances more effectively. Moreover, it addresses common complaints from customers who struggle to get change due to ATMs dispensing only high-value notes.

Deadlines For Banks

The RBI has set clear deadlines for all banks to comply with its directive. By 30 September 2025, at least 75% of each bank's ATMs must be capable of dispensing Rs 100 and Rs 200 notes, with this requirement rising to 90% by 31 March 2026. To achieve this, banks will need to upgrade their ATMs and modify the internal note cassettes to accommodate these smaller denominations.

To ensure compliance, the RBI will closely monitor banks' progress. Banks are required to submit monthly reports, carry out regular inspections of their ATMs, and promptly address any machines that fail to meet the standards, particularly in densely populated or underserved regions. Failure to meet these deadlines may result in penalties for the banks.