73% ATMs now dispense ₹100, ₹200 notes ahead of RBI's Sept 30 deadline

Banks have made notable progress toward meeting the Reserve Bank of India’s (RBI) mandate to increase the availability of low-denomination currency through ATMs. Ahead of the September 30 deadline, 73 per cent of ATMs are now configured to dispense ₹100 or ₹200 notes from at least one cassette, according to a report by The Economic Times.
 
According to CMS Info Systems, India’s largest cash management company operating 73,000 of the 215,000 ATMs in the country, this marks a steady rise from 65 per cent in December 2024.
 
“With 60 per cent of consumer expenditure still anchored in cash, enabling availability of ₹100 and ₹200 notes directly addresses day-to-day transactional needs, especially in semi-urban and rural markets,” said Anush Raghavan, president, cash management at CMS Info Systems, as reported by The Economic Times.
RBI guidelines set staggered compliance targets
 
In a circular issued at the end of April 2025, the RBI had directed all banks to ensure that a minimum of 75 per cent of ATMs dispense ₹100 or ₹200 banknotes from at least one cassette by September 30, 2025. The central bank’s goal is to improve public access to lower denominations, which are widely used for daily transactions. The mandate further tightens by March 31, 2026, when 90 per cent of ATMs are expected to meet this requirement.

RBI revises ATM interchange fees
 
The Reserve Bank of India (RBI) has increased ATM interchange fees, which will make cash withdrawals costlier starting May 1. This move will primarily affect frequent ATM users who exceed the number of free transactions allowed per month.