Kathmandu, September 15
Banks and financial institutions in Nepal will now start keeping Rs 100 notes in ATMs after Nepal Rastra Bank directed them to make the denomination available for withdrawal.
At present, most ATMs dispense only Rs 1,000 and Rs 500 notes. Under the new arrangement, customers will also be able to withdraw Rs 100 notes from ATMs equipped to support the denomination.
The central bank said the decision was taken after the public repeatedly called for smaller denominations to be made available through ATMs. Banks and financial institutions have also informed the central bank that they can technically make Rs 100 available through their ATM networks.
However, the availability of Rs 100 notes will initially be limited to some ATMs because most machines currently in operation in Nepal are older models.
Traditional ATMs can hold only two denominations of notes, while newer and more advanced machines can hold up to four denominations. As many banks still operate traditional ATMs, only a limited number of machines will be able to dispense the notes.
Nepal Rastra Bank said making Rs 100 available through ATMs during the Dashain festival would help reduce crowds at bank branches, where customers typically line up to exchange larger denominations for smaller notes.
According to the central bank, banks consulted on the matter have confirmed that distributing Rs 100 notes through ATMs is technically feasible.
