Archive · 27 Jan 2026
Govt plans ATMs for small notes
The Indian government is thinking of new ways to make small money notes like ₹10, ₹20, and ₹50 more available.
They are testing special ATMs in Mumbai that can give out these small notes and coins.
These machines will be placed in busy places like markets and hospitals.
The idea is to help people who need small change for daily transactions, especially in places where digital payments are not common.
The government is also asking the central bank to print more of these small notes.
Some experts say that just having machines is not enough; they also need to make sure there are enough small notes available.
The goal is to make life easier for people who rely on cash, like daily wage workers and small traders.
Government exploring new ATMs to dispense small-denomination notes (₹10, ₹20, ₹50) and coins.
Pilot project for low-denomination currency dispensing machines underway in Mumbai.
Hybrid ATMs proposed to exchange large notes for smaller denominations and coins.
RBI tested a hybrid ATM model at a Bank of Baroda branch in Mumbai.
Initiative aims to address the shortage of small notes for everyday cash transactions.
- Who
- Indian government and Reserve Bank of India (RBI)
- What
- Planning to introduce ATMs that dispense small-denomination notes and coins
- When
- Pilot project currently being tested; wider rollout decision expected in coming weeks
- Where
- Pilot in Mumbai; potential national rollout at high-footfall locations
- Why
- To address the shortage of small-denomination currency notes for everyday transactions
- Proposed Machines
- Low-denomination currency dispensing machines and hybrid ATMs
- Pilot Location
- Mumbai
- Expected Beneficiaries
- Daily wage earners, small traders, and commuters
- RBI Data (2026)
- ₹500 notes: 41.2% by volume, 86% by value; smaller notes: 38% by volume, 3.1% by value
- Currency in Circulation
- ₹39.27 trillion as of January 2026 (up from ₹17.97 trillion in November 2016)