RBI Decision on Rs 100 & Rs 200 Notes: New ATM Dispensing Rules Effective from 30th September 2025

The Reserve Bank of India (RBI) has made an important move to enhance public access to frequently used currency denominations. The central bank has directed all banks and White Label ATM Operators (WLAOs) to ensure that their ATMs start dispensing Rs 100 and Rs 200 denomination notes by specific deadlines. This change is set to take effect from 30th September 2025.Key Milestones for ATM UpdatesThe RBI has laid out two critical milestones for the implementation of the new rule:By 30th September 2025: 75% of all ATMs must be capable of dispensing Rs 100 or Rs 200 notes from at least one cassette.By 31st March 2026: 90% of ATMs are required to dispense either Rs 100 or Rs 200 denomination notes.Background on the Rs 200 DenominationThe Rs 200 note was first introduced in 2017 by the RBI as part of an effort to ease day-to-day transactions. It was designed to bridge the gap between the Rs 100 and Rs 500 denominations, offering greater convenience for smaller transactions. However, initially, these notes were made available through select RBI offices and banks, with the supply gradually increasing.Future of Rs 200 Notes in the MarketRBI has assured that the production of Rs 200 notes is ramping up and will be distributed across the country as more are printed. This will make these notes more accessible to the public in the coming months.Through this initiative, the RBI aims to improve public access to essential currency denominations, making it easier for people to withdraw smaller denominations from ATMs as per their needs.FAQs on RBI's New ATM Rule for Rs 100 and Rs 200 BanknotesQ1. What is the new RBI rule about Rs 100 and Rs 200 banknotes?The RBI has mandated that by 30th September 2025, 75% of all ATMs should dispense Rs 100 or Rs 200 denomination notes, with the percentage increasing to 90% by 31st March 2026.Q2. Why is the RBI implementing this rule?The move aims to improve public access to frequently used currency denominations, making it easier for people to withdraw smaller denominations of Rs 100 and Rs 200 from ATMs.Q3. When will the new rule be effective?The rule will be applicable starting 30th September 2025, with the first milestone (75% of ATMs) to be achieved by this date. By 31st March 2026, 90% of ATMs must comply.Q4. What does the rule mean for ATMs?It means that by the set deadlines, ATMs will be required to dispense Rs 100 or Rs 200 notes from at least one cassette in 75% of ATMs by September 2025, and 90% by March 2026.Q5. Is the Rs 200 note new?The Rs 200 note was introduced by the RBI in 2017 to facilitate easier transactions. Initially, it was made available through select RBI offices and banks, and now the supply will increase gradually across ATMs.Q6. Will these notes be available for public withdrawal immediately?No, the supply of Rs 200 notes is being gradually ramped up. As more notes are printed, they will be distributed across the country, making them available in sufficient quantities over time.Q7. How does this change benefit the public?The new rule will enhance access to smaller denominations of currency, ensuring that people can easily withdraw Rs 100 and Rs 200 notes from ATMs, especially for day-to-day transactions.Q8. Which ATMs will follow the new rule?All banks and White Label ATM Operators (WLAOs) must adhere to the new rule, ensuring their ATMs are updated to dispense Rs 100 and Rs 200 notes.