With complaints about the shortage of smaller currency notes across many parts of India, the government has initiated a pilot project that could allow withdrawals of ₹10, ₹20, and ₹50 notes from ATMs in the future.
Union Minister of State for Finance Pankaj Chaudhary informed the Rajya Sabha that a pilot programme for dispensing lower denomination banknotes through small-value dispensers has been launched. If successful, the initiative could address accessibility issues for small cash transactions that still remain common across the country.
According to the minister, lower denomination banknotes such as ₹10, ₹20, and ₹50 have not traditionally been dispensed through ATMs in India.
Responding to a question in the Rajya Sabha on March 10, 2026, Chaudhary said the government has begun testing small-value cash dispensers that could distribute these notes.
The pilot project aims to examine whether ATMs can efficiently supply smaller notes, which are widely used in everyday transactions such as local transport fares, street purchases, and small retail payments.
The development comes after concerns were raised about the limited availability of smaller denomination notes in banks and ATMs in several regions.
Government data shared in the Rajya Sabha highlights the supply of lower denomination notes over the past few financial years.
| Denomination | FY 2022-23 | FY 2023-24 | FY 2024-25 | FY 2025-26* |
| ₹10 | 6,000 | 8,000 | 18,000 | 43,940 |
| ₹20 | 19,999 | 20,000 | 15,000 | 19,370 |
| ₹50 | 20,000 | 25,000 | 30,000 | 13,030 |
*FY 2025-26 data up to February 26, 2026.
The figures show a sharp rise in the supply of ₹10 notes in the current financial year, while ₹20 and ₹50 notes have seen fluctuating supply trends.
The government said that demand for smaller denominations is currently met through a combination of banknotes, coins, and digital payments.
Digital payment systems, including UPI and card transactions, now account for a significant portion of low-value transactions in India.
At the same time, the Reserve Bank of India (RBI) continues to monitor the economy’s cash requirements.
According to the minister, the RBI regularly assesses the demand for different denominations and recommends the appropriate currency mix to be printed to ensure adequate circulation.
Read more: Elon Musk Says X Money Payments System to Launch Next Month As ‘Everything App’ Vision Advances.
While India’s digital payments ecosystem continues to grow rapidly, small denomination currency remains essential for many everyday transactions. The pilot project for dispensing ₹10, ₹20, and ₹50 notes through small-value ATM dispensers could therefore play an important role in improving cash accessibility.
If the trial proves successful, it may pave the way for broader adoption of smaller denomination withdrawals from ATMs across the country, helping bridge the gap between digital payments and cash-based transactions.
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Published on: Mar 11, 2026, 5:56 PM IST
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