RBI directs banks to dispense more 100 rupees notes through ATMs
The decision came after a review of steps taken by banks for installing ATMs dispensing lower denomination banknotes was conducted.
The Reserve Bank of India (RBI) on 2 November 2016 directed all the banks to dispense more 100 rupees notes through ATMs within the next 15 days.
The decision came after a review of steps taken by banks for installing ATMs dispensing lower denomination banknotes was conducted. After the review, it was found that very few banks had taken initiatives in setting up ATMs dispensing lower denomination notes including 100 rupees banknotes.
In keeping with the objectives of Clean Note Policy and to ensure that genuine requirement of members of public for 100 rupees denomination banknotes are met, the banks should increase dispensation of 100 rupees banknotes through ATMs which are widely used for distribution of banknotes for retail use.
Moreover, RBI also decided to conduct a pilot project wherein 10 percent of the ATMs in the country will be calibrated to dispense 100 rupees banknotes exclusively.
For this purpose, banks are free to select the branches with the sample covering relatively large number of centres or states. Once it is completed, the banks will further share their feedback on the pilot project after a lapse of two months.