New Delhi, January 30, 2026 — In a move to address the ongoing difficulty in obtaining small change for daily transactions, the Indian government is exploring innovative solutions to improve the availability of low-denomination currency notes. Even as digital payment platforms like UPI continue to dominate financial transactions, cash remains vital for millions, particularly in informal sectors, rural areas, and for small everyday purchases such as tea, auto rides, or street vendor goods.
According to reports citing officials familiar with the discussions, the government is considering the introduction of specialized automated teller machines (ATMs) capable of dispensing ₹10, ₹20, and ₹50 notes directly. Traditional ATMs primarily dispense higher denominations like ₹100, ₹200, or ₹500, which often leaves users struggling to break larger notes for minor expenses.
A key proposal involves hybrid ATMs, which would combine standard withdrawal functions with exchange capabilities. Users could insert higher-denomination notes (such as ₹500 or ₹100) and receive smaller notes or even coins in return, all in a single transaction. This feature aims to make “loose change” more accessible without requiring a visit to a bank branch or relying on reluctant shopkeepers.
The initiative stems from the recognition that small-denomination notes (₹10, ₹20, and ₹50) constitute a significant portion of currency volume in circulation but remain scarce in everyday use. Officials have also discussed urging the Reserve Bank of India (RBI) to increase the printing and supply of these lower-value notes to support better overall circulation.
A pilot project is currently underway in Mumbai, where prototypes of low-denomination currency dispensing machines are being tested. Some reports indicate that hybrid ATM models have already been trialed at select bank branches, such as those of Bank of Baroda. If the pilot proves successful, the system is expected to be scaled up nationwide.
Future installations would prioritize high-footfall public locations to maximize impact, including:
- Transport hubs like railway stations and bus stands
- Busy markets
- Hospitals
- Government offices
This development complements existing RBI guidelines, which have pushed for greater availability of ₹100 and ₹200 notes in ATMs (with targets set for 2025-2026 compliance). However, the new focus on even smaller denominations reflects an effort to bridge the gap between India’s booming digital economy and the needs of its cash-dependent population.
While no firm nationwide rollout timeline has been announced, the proposals represent a practical step toward easing daily hassles for cash users. Street vendors, daily wage earners, and commuters—who often face rejection due to lack of change—stand to benefit the most once these machines become widely available.
The government emphasizes that this is not a rollback of digital progress but a balanced approach to ensure no one is left behind in India’s evolving payment landscape.
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