If you too are worried while withdrawing money from the ATM thinking that only ₹ 500 notes always come out, then there is good news for you now. The Reserve Bank of India (RBI) has given strict instructions to the banks to ensure the availability of ₹ 100 and ₹ 200 notes in ATM machines.
RBI gave instructions to banks
In a circular issued on 29 April 2025, RBI has asked all banks and White Label ATM Operators (WLAOs) to start dispensing smaller denominations – ₹ 100 and ₹ 200 notes – in their ATMs in a phased manner. The purpose of this decision is to improve the convenience of cash to the general public and diversify the transactions.
Now it will be mandatory to withdraw these notes from ATM
According to RBI circular:
- By 30 September 2025, 75% of the ATMs in the country should dispense ₹ 100 or ₹ 200 notes from at least one cassette.
- Then by 31 March 2026, this system should be implemented in 90% of ATMs.
This change will relieve customers from the problem of large amount notes and make transactions more convenient.
What are White Label ATMs?
White Label ATMs are installed by private companies. They work just like any bank ATM, where customers can withdraw money from their debit card, credit card, check balance or get mini statement. RBI has also included them in the scope of this new rule.
Withdrawing money from ATM will become expensive from May 1!
Apart from this, ATM transaction charges are also going to change from May 1, 2025. Now if a customer transacts from an ATM of a bank other than his home bank (in which he has an account), he will have to pay higher charges:
Cash withdrawal charges:
- Earlier: ₹17 per transaction
- Now: ₹19 per transaction
Balance check charges:
- Earlier: ₹6
- Now: ₹7
This increase is based on the proposal of NPCI (National Payments Corporation of India), which has been approved by RBI.
Conclusion
This move of RBI is a major reform towards increasing the convenience of customers, ensuring the availability of small notes and making the transaction system more user-friendly. At the same time, the fee changes that will come into effect from May 1 indicate that the need to move towards digital payments has become even greater now.