RBI Directs Banks to Ensure ATMs Dispense Rs. 100 and Rs. 200 Notes
In response to numerous complaints from the public, the Reserve Bank of India (RBI) has issued a directive to all banks and ATM operators to ensure that their machines dispense smaller denomination notes, specifically Rs. 100 and Rs. 200.
Currently, most ATMs in India dispense mainly Rs. 500 notes, causing difficulties for many, especially low-income individuals who need to withdraw smaller amounts. When customers request amounts less than Rs. 500, ATMs often show “no cash available,” which severely impacts those relying on smaller denominations.
According to the RBI’s circular, by September 30, 75% of all ATMs must have at least one cassette filled with Rs. 100 or Rs. 200 notes. This target will increase to 90% by March 31 next year.
ATMs typically have four cassettes that can hold notes of Rs. 100, Rs. 200, Rs. 500, and Rs. 2000 denominations. However, with Rs. 2000 notes currently not in circulation, many ATMs use those cassettes to store only Rs. 500 notes, resulting in a shortage of smaller denominations.
The RBI’s order aims to rectify this situation, ensuring that all ATMs offer smaller notes to better serve the needs of all citizens.
