**Policy Summary: RBI201617106 DCM CC No.117003.41.01201617**
**Subject:** Dispensation of Rs.100 Denomination Banknotes through Exclusive ATMs
**Date:** November 02, 2016
**Issuing Authority:** Reserve Bank of India (RBI), via P. Vijaya Kumar, Chief General Manager
**Purpose:** To increase the availability of Rs.100 denomination banknotes to the public through ATMs, in line with the Clean Note Policy.
**Background:** Following a review of banks' efforts to install ATMs dispensing lower denomination banknotes, the RBI found limited progress in the dispensing of Rs.100 notes.
**Policy Directive:** The RBI directs all banks to participate in a pilot project to configure/calibrate 10 ATMs each to dispense Rs.100 banknotes exclusively.
**Implementation:**
* Banks are required to complete the configuration/calibration of 10 ATMs within 15 days of the circular date.
* Banks have the autonomy to select ATM locations, ensuring coverage across a wide range of centers/states.
* Banks must report compliance and provide data on the location of the selected ATMs to the RBI in the format annexed to the circular, to be sent via email.
**Evaluation:** Banks are requested to share feedback on the pilot project after two months of operation.
**Contact:** P. Vijaya Kumar, Chief General Manager, RBI.
Key Entities Referenced
Reserve Bank of India: The central bank of India, referred to here as RBI.
All Banks: Refers to all banking institutions regulated by the Reserve Bank of India.
Rs.100 denomination banknotes: Refers to banknotes of 100 Rupee denomination.
ATMs: Automated Teller Machines used for dispensing cash, specifically Rs.100 banknotes in this context.
DCM CC G10335203.41.01201516: Reference number of a circular dated May 5, 2016, related to the Currency Distribution and Exchange Scheme.
Currency Distribution and Exchange Scheme: A scheme referred to as CDES, related to the distribution and exchange of currency.
Clean Note Policy: A policy aimed at improving the quality of banknotes in circulation.
P. Vijaya Kumar: Chief General Manager at Reserve Bank of India, signatory of the circular.
RBI/2016-17/106
DCM (CC) No.1170/03.41.01/2016-17 November 02, 2016
The Chairman & Managing Director /
Chief Executive Officer,
All Banks
Madam / Dear Sir,
Dispensation of Rs.100 denomination banknotes through exclusive ATMs
Please refer to our circular DCM (CC) G-10/3352/03.41.01/2015-16 dated May 5, 2016 on
the Currency Distribution and Exchange Scheme (CDES).
2. A review of steps taken by banks for installing ATMs dispensing lower
denomination banknotes was conducted and found that very few banks had taken
initiatives in setting up ATMs dispensing lower denomination notes including Rs.100
denomination banknotes.
3. In keeping with the objectives of Clean Note Policy and to ensure that genuine
requirement of members of public for Rs. 100 denomination banknotes are met, the
banks should increase dispensation of Rs. 100 banknotes through ATMs which are widely
used for distribution of banknotes for retail use.
4. With a view to encourage the banks in that direction, it has been decided to
conduct a pilot project wherein 10% of the ATMs in the country will be calibrated to
dispense Rs.100 banknotes exclusively. You are, therefore, advised to configure /
calibrate 10% of your ATMs to facilitate this arrangement.
5. As the process involved in configuring the requisite number of machines is not
complex, the banks are required to complete the exercise within 15 days from the date of
the circular and report compliance. For this purpose, banks are free to select the
branches with the sample covering relatively large number of centres / states. The dataon location of such ATMs in the annexed format may also be advised to us. You may
share your feedback on the pilot after a lapse of two months.
6. Kindly acknowledge receipt.
Yours faithfully,
(P. Vijaya Kumar)
Chief General Manager
Encl : As aboveDispensation of Rs.100 denomination banknotes through exclusive ATMs
Name of the bank –
Sr.No. State City / Town / District Address of the ATM location
(To be sent by email)