In April 2025, the Reserve Bank of India (RBI) has decided to extend the timeline for Banks to deploy the latest Bureau of Indian Standards (BIS) standards Note Sorting Machines (NSM) by six months i.e. (that is), up to November 01, 2025.
- Also, RBI has directed banks and White Label ATM Operators(WLAOs) to ensure Automated Teller Machines (ATMs) dispense Rs.100 and Rs.200 notes on a regular basis.
About standards issued by the Bureau of Indian Standards (BIS):
i.In order to further strengthen the banknote sorting architecture across the country, the BIS after due consultation with RBI and other stakeholders, had published the standards for Note Sorting Machines (NSM) – ‘(Indian Standards) IS 18663: 2024’ in the ‘Gazette of India’ on March 19, 2024.
ii.It was then decided that effective from May 01, 2025, banks should deploy only such NSM models that conform to the above mentioned Indian Standards and are duly certified by BIS.
iii.Now, currently the RBI has extended the deadline to November 01,2025.
iv.These standards specify the performance and safety requirements of NSMs to ascertain the authenticity and fitness of banknotes processed.
- These requirements include the criteria specified in the guidelines issued by the RBI from time to time such as soiling, limpness, dog-ears, tears, holes, stains, folds, etc. These machines must be able to detect adequately while processing the banknotes.
RBI directs banks and WLAOs to ensure ATMs dispense Rs.100 and Rs.200 notes on a regular basis
In April 2025, RBI has decided that all banks and White Label ATM Operators (WLAOs) shall ensure that their Automated Teller Machines (ATMs) dispense Rs.100 and Rs.200 denomination banknotes on a regular basis as per following milestones:
- By September 30, 2025: 75 per cent of all ATMs shall dispense either Rs. 100 or Rs. 200 denomination banknotes from at least one cassette.
- By March 31, 2026: 90 per cent of all ATMs shall dispense either Rs. 100 or Rs. 200 denomination banknotes from at least one cassette.
ii.This is a part of RBI’s serious effort towards enhancing public access to frequently used denominations of banknotes.
Note*Recently in March 2025, the RBI increased the ATM fee by Rs 2 to Rs 23 per transaction with effect from May 1 and this fee will be decided by the ATM network. The interchange fee has been increased to Rs 19 from Rs 17 for financial transactions and Rs 7 for non-financial transactions.
Important Terms:
White Label ATM (WLA): ATMs set up, owned and operated by non-banks are called WLAs. Non-bank ATM operators are authorised under the Payment & Settlement Systems Act, 2007 by the RBI.
