Cash crunch? India tests hybrid ATMs to dispense small notes
India is piloting a low-denomination currency-dispensing prototype in Mumbai that dispenses ₹10, ₹20, and ₹50 notes, and hybrid ATMs that can exchange large notes for smaller notes or coins have also been tested—finally making it easier to get change for daily stuff like chai or rickshaw rides.
These machines are planned for busy spots such as stations, markets, hospitals, and government offices.
The move comes as digital payments (think UPI) take over and cash becomes harder to break.
Why does this matter?
Hybrid ATMs let you swap a ₹500 note for smaller bills and coins in one go—a real help for commuters and vendors who still rely on cash.
The Reserve Bank of India wants 90% of ATMs to offer small notes; no target date specified in the source.
The bigger picture
Even though ₹500 notes dominate in value, large sections of the population still need smaller change for everyday buys—and there just isn't enough around.
These new ATMs could bridge the gap between India's digital payment boom and those who still count on cash.
If approved, they could be scaled up across the country.