What changed
RBI issued a circular on April 28, 2025, setting phased milestones for ATM cash replenishment. Banks must now allocate at least one cassette in 75% of ATMs for ₹100 or ₹200 notes by September 30, 2025, and in 90% of ATMs by March 31, 2026.
What it means for you
Banks and WLAOs need to reconfigure ATM cassettes and cash management processes to meet these targets, potentially increasing operational costs for recalibration and logistics. This move aims to reduce public inconvenience from high-value note shortages and boost circulation of smaller denominations, which may impact cash-in-transit frequency and ATM uptime.
What you must do
- Audit current ATM cassette configurations to identify gaps in dispensing ₹100 or ₹200 notes.
- Plan cassette reallocation or hardware upgrades to meet the 75% target by Sep 30, 2025.
- Coordinate with cash management vendors to ensure adequate supply of ₹100 and ₹200 notes.
- Monitor compliance milestones and report progress to RBI as per existing reporting norms.
- Train ATM operations staff on new cassette loading procedures and denomination mix.
Who it affects
All scheduled commercial banks, White Label ATM Operators (WLAOs), Cash management and logistics providers, ATM manufacturers and maintenance firms
What are the exact deadlines for compliance?
75% of ATMs must dispense ₹100 or ₹200 notes from at least one cassette by September 30, 2025, and 90% by March 31, 2026.
Does this apply to all ATMs, including those in rural areas?
Yes, the circular applies to all ATMs operated by banks and WLAOs across India, with no geographic exemptions mentioned.
What happens if we fail to meet the milestones?
The circular does not specify penalties, but non-compliance may invite supervisory action or regulatory scrutiny from RBI.