Govt weighs new ATMs for small change

The proposal includes a new kind of ATM to issue ₹10, ₹20 and ₹50 notes

- Subhash Narayan & Gireesh Chandra Prasad

The move is expected to benefit large sections of the population that continue to rely heavily on cash.

(MINT)

The Centre is exploring multiple ways to make small-denomination currency notes more widely available, in a move to address a persistent shortage that has plagued everyday cash transactions nearly a decade after demonetization.

The proposal includes a new kind of currency-dispensing machine to issue ₹10, ₹20 and ₹50 notes on demand, a ‘hybrid ATM that can exchange large notes for smaller denominations and coins, and a move to push the central bank to print more small denomination currency notes, according to two officials familiar with discussions within the government.

“A prototype of low-denomination currency dispensing machines is currently being tested under a pilot project in Mumbai,” the first official cited above said on condition of anonymity. “Once approved, the system is expected to be scaled up nationally.”

These machines will be installed at high-footfall public locations such as transport hubs, markets, hospitals and government offices.