Reserve Bank Of India / Big update on 100 and 200 rupee notes, effect of RBI order seen

The effect of RBI's new guidelines is starting to show. 73% of the country's ATMs are now giving 100-200 rupee notes. This is an increase from 65% in December 2024. According to CMS Info Systems, cash transactions have increased in rural areas. Interchange fees will also increase from May 1, 2025.

Reserve Bank Of India: The effect of the instructions issued by the Reserve Bank of India (RBI) in April 2025 is now clearly visible in the market. 73 percent of the country's ATMs have now started giving Rs 100 and Rs 200 notes from a cassette, giving relief to the general public in the availability of small notes.

Reach of Rs 100 and Rs 200 notes increased

RBI has set a deadline of 30 September 2025, under which at least 75 percent of the ATMs in the country should dispense Rs 100 and Rs 200 notes. There is constant progress in this direction. India's largest cash management company, CMS Info Systems, has informed that this figure was 65 percent in December 2024, which has now reached 73 percent.

According to the company's cash management head, Anush Raghavan, about 60 percent of consumer expenditure in the country is still cash-based. The demand for small notes is high especially in rural and urban areas, as the reach of digital payments is limited there. In such a situation, the availability of small notes is playing an important role in meeting the daily needs of the people.

RBI sets ATM standards

According to the RBI circular, this target will become more stringent by March 31, 2026, when 90% of the country's ATMs should dispense at least one cassette of Rs 100 or Rs 200 notes. The aim of this initiative is that the general public, especially those in rural areas, can easily access the small notes required for daily transactions.

Increased ATM interchange fees: Withdrawing cash will be expensive

RBI has taken another big decision with this. ATM interchange fees have been increased from May 1, 2025. This will directly affect those consumers who exceed the limit of free transactions every month.

Interchange fee is the amount that one bank pays to another bank for withdrawing cash from its ATM. This charge is often passed on to the user. For example, if an HDFC Bank customer withdraws money from an SBI ATM after three free transactions, HDFC may charge an additional fee on that withdrawal.