RBI’s Big Move: ₹100 and ₹200 Notes to Be Mandatory in ATMs Soon

• ₹100, ₹200 notes must be dispensed from ATMs
• RBI sets phased deadlines for compliance
• No technical modifications needed for banks

The Reserve Bank of India (RBI) has issued new directions that will make it compulsory for banks and ATM operators to ensure regular availability of ₹100 and ₹200 notes in cash machines. This decision comes after repeated complaints from the public and retailers about difficulties in accessing small denomination currency for day-to-day transactions.

According to RBI’s circular, banks and white-label ATM operators must gradually implement the order in phases. By September 30, 2025, at least 75 percent of ATMs across India should be able to dispense ₹100 or ₹200 notes from at least one cassette. The deadline for 90 percent compliance has been set for March 31, 2026.

Interestingly, the central bank clarified that banks do not need to make any special technical changes to their existing ATMs, since most machines are already equipped with cassettes for these denominations. The new rule simply makes it mandatory for them to be stocked and maintained consistently.

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Many ATMs across smaller towns and cities had stopped issuing ₹100 and ₹200 notes due to operational neglect, forcing people to rely heavily on digital payments or higher denomination currency. For shopkeepers and local businesses, this shortage often created trouble in returning change to customers.

The RBI believes the new directive will improve the circulation of small currency, bring relief to everyday cash users, and reduce inconvenience in retail transactions. Banks have been asked to monitor their ATMs regularly to avoid shortages and maintain smooth public access to lower-value notes.

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