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RBI’s ATM Rule Shocker: Goodbye to 500 Notes?

The Reserve Bank of India (RBI) has made a new rule to make 100 and 200 notes easier to get from ATMs. Right now, most ATMs give only 500 notes, which are not useful for small purchases.

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So, the RBI said that by September 30, 2025, at least 75% of ATMs must give 100 or 200 notes. This number should increase to 90% by March 31, 2026.

This rule is to help people who need change for daily needs like travel, vegetables, or tea shops.

But some people are not happy with this rule. They say it does not solve the real problem — that 500 notes might still be used by the rich and corrupt to hide black money (illegal cash transactions). Big notes are easy to store and hide, so people use them to keep unaccounted money.

Also, if ATMs start giving more small notes, people who need to take out large amounts will have to do more transactions. This means longer waiting times, extra ATM charges, and more trouble — especially for poor or working people who depend on cash.

Some also feel that instead of changing existing ATMs, the RBI should work on providing better banking services in villages. Many rural areas still don’t have enough ATMs or banks.

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Manaswini K

Manaswini is a senior writer with extensive experience covering Telugu cinema, as well as the broader Indian film landscape, including Bollywood, Tamil, and other regional industries. With a strong focus on NRI (Non-R…

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