When you go to withdraw money from a bank ATM you might have noticed that smaller denomination notes like Rs. 100 or Rs. 200 are often not available and you usually end up getting Rs. 500 notes instead. To fix this issue the Reserve Bank of India (RBI) has now taken a major step and issued new instructions to banks. On Monday the RBI directed all banks to make sure that ATMs are loaded with enough Rs. 100 and Rs. 200 notes so that people have better access to smaller denominations. The central bank said this change is necessary to make it easier for the general public to get lower-value currency when they need it. To make this happen banks and white label ATM operators (WLAOs) have been asked to implement this change gradually. What are White Label ATMs? White Label ATMs work just like regular bank ATMs but they are set up and operated by private or non-banking financial companies (NBFCs) not by banks. You can use debit or credit cards at these ATMs to withdraw cash check your balance and use all the services you’d normally find at a bank ATM. This move is expected to make smaller currency notes more easily available and improve convenience for ATM users across the country. What’s in the new RBI circular? The Reserve Bank of India (RBI) has issued a new directive aimed at making Rs. 100 and Rs. 200 notes more accessible through ATMs. The circular highlights that since these smaller denominations are frequently used by the public banks and White Label ATM Operators (WLAOs) must ensure that their machines regularly dispense them. By 30 September 2025 at least 75 per cent of all ATMs must have at least one cassette that dispenses Rs. 100 or Rs. 200 notes. By the next phase ending 31 March 2026 this must increase to 90 per cent of ATMs across the country. This phased approach is designed to improve access to smaller notes for everyday use. ATM transactions to get costlier from May 1 Starting May 1 2025 withdrawing cash or even checking your balance at ATMs that dont belong to your own bank will become more expensive. Currently if you use an ATM outside your home bank’s network youre charged Rs. 17 per cash transaction and Rs. 6 for a balance inquiry. But from May 1 based on a change approved by the RBI and suggested by the National Payments Corporation of India (NPCI): The charge for cash withdrawals from another banks ATM will increase to Rs. 19 per transaction. The balance check fee will go up to Rs. 7. This change affects customers who rely on ATMs other than those operated by their own bank making it important to plan ATM usage carefully to avoid higher fees.