Government To Launch Hybrid ATMs For Small Denominations Like ₹10, ₹20, ₹50

India has long faced the problem of retail money shortage , especially when citizens need small denominations of cash for everyday purchases. While ATMs generally dispense notes of Rs 100 or Rs 500, coins and lower denomination notes like Rs 10, 20, and 50 are often unavailable. To address this issue, the central government is reportedly planning to launch hybrid ATMs capable of dispensing small notes and coins.

The Need for Small Denominations

Despite the rapid rise of digital payments in India, cash transactions remain vital, particularly for essential goods. Many small shops and local vendors do not accept UPI or card payments, leaving a large portion of the population reliant on cash. Furthermore, many people are not yet familiar with digital payment methods, making the availability of smaller notes a critical necessity in daily transactions.

Reports indicate that the new hybrid ATMs will allow citizens to withdraw Rs 10, 20, and 50 easily, ensuring the common man no longer faces difficulties during small purchases. These ATMs are also expected to offer the facility to exchange large notes for smaller denominations, further easing retail transactions.

Planned Locations for Hybrid ATMs

Government sources suggest that these ATMs will be installed in high-traffic and essential locations such as markets, hospitals, commercial areas, railway stations, and bus stands. Cities with heavy cash flow, like Kolkata, are likely to receive priority in the rollout, ensuring that both residents and visitors can access smaller denominations conveniently.

A pilot project has already been launched in Mumbai to assess the feasibility and public interest in hybrid ATMs. Officials are monitoring how effective these machines are and whether there is sufficient demand to justify wider implementation across other cities.

Digitalisation and Public Reception

While the government continues to push for digital payments, there are doubts about whether the hybrid ATM initiative will be widely implemented and sustained. However, if successful, these machines could significantly benefit citizens who rely heavily on small cash transactions. The pilot project in Mumbai will provide valuable insights into public usage patterns and the practicality of these ATMs in addressing the retail money problem.

Potential Benefits of Hybrid ATMs

Hybrid ATMs are expected to simplify retail transactions, reduce the inconvenience of carrying large notes, and ensure smooth access to cash for everyday purchases. By dispensing smaller denominations, these machines could support citizens who are unable to adopt digital payments fully, bridging the gap between cash and digital economies.