The Government of India has initiated a pilot project to improve the availability of small denomination currency notes through ATMs. As part of this initiative, Rs 10, Rs 20 and Rs 50 notes will soon be accessible via select ATMs, with Mumbai chosen as the testing ground for the rollout

Despite the rapid adoption of UPI and other digital payment platforms, cash continues to play a crucial role in everyday transactions. Small shopkeepers, commuters, street vendors and daily wage earners still rely heavily on cash, often facing difficulties due to the lack of change for low-value payments.

To address this long-standing issue, the government plans to expand the supply of smaller denomination notes by enabling their withdrawal directly from ATMs. The objective is to ensure easier access to Rs 10, Rs 20 and Rs 50 notes for routine cash-based transactions such as local travel, tea stalls and neighborhood shopping.

Under the pilot program, new or upgraded ATM machines are being installed in high-footfall areas including hospitals, bus depots, railway stations, local markets and government offices. These ATMs will dispense not only Rs 100 and Rs 500 notes but also smaller denominations to meet daily cash requirements.

In addition, the government is exploring the installation of dedicated machines that allow users to exchange large-value notes for smaller ones. The small-currency ATMs currently operating on a trial basis in Mumbai will be expanded nationwide if the pilot proves successful.