New Delhi: Life in India has become significantly easier since the digital payment system gained momentum. However, customers who do not use digital payment methods often face inconvenience; when they visit shops to purchase items using 100 or 500-rupee notes, shopkeepers frequently refuse to complete the transaction, citing a lack of change.
The primary reason for this situation is that, in the current times, the majority of people rely heavily on digital payment systems. Consequently, a shortage of lower-denomination currency notes is being felt. Recognising the growing difficulties faced by the public, the government is now formulating a plan to address this shortage of small-denomination notes.
This implies that small-denomination notes will soon become available for withdrawal from ATMs as well. In response to a question raised in the Rajya Sabha, Pankaj Chaudhary shared significant information regarding this matter.
Will Small-Denomination Notes Be Available at ATMs?
Responding to a query in the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary made a significant statement. He noted that, according to the RBI, ATMs have traditionally not been used to dispense lower-denomination banknotes.
He further informed the House that a pilot project has been launched to dispense small-denomination notes through ‘Small Value Dispensers.’ These specialised ATMs will dispense notes in denominations of ₹10, ₹20, and ₹50, thereby helping people overcome the persistent problem of finding loose change.
What Do the Reports on the Supply of Small Notes Indicate?
According to government reports, the central bank has made a substantial number of small-denomination notes available in the market during the current financial year, up to February 26. During this period, approximately 439.40 crore notes of ₹10, 193.70 crore notes of ₹20, and 130.30 crore notes of ₹50 were issued. In comparison, during the previous financial year, the supply consisted of 180 crore notes of ₹10, 150 crore notes of ₹20, and 300 crore notes of ₹50.
Minister of State Shares Key Information
Minister of State for Finance Pankaj Chaudhary stated in the Rajya Sabha that the RBI continuously assesses the demand for banknotes across various denominations in accordance with the requirements of the economy, and based on this assessment, it recommends to the government the quantity of notes to be printed. Furthermore, it was stated that the demand for low-denomination cash is met not only through banknotes but also through coins. Additionally, the use of digital payments for low-value transactions is also growing rapidly.