Nepal Rastra Bank (NRB) has directed banks and financial institutions to make arrangements for dispensing Rs 100 banknotes through ATMs ahead of the upcoming Dashain and Tihar festivals.
Currently, ATMs operated by banks and financial institutions generally allow customers to withdraw paper notes in denominations of Rs 1,000 and Rs 500. Issuing a circular to the Nepal Bankers’ Association, the central bank has instructed banks to enable customers to withdraw Rs 100 notes as well.
NRB spokesperson Guru Prasad Paudel said the provision aims to reduce the inconvenience faced by customers who need small amounts of cash and would otherwise have to visit a bank counter.
“The aim is to eliminate the compulsion for customers to go all the way to a bank counter just because they need a hundred-rupee note,” Paudel said.
He said the arrangement is also intended to help manage crowds at bank branches and meet the increased demand for cash during Dashain.
According to Paudel, the central bank is concerned that the supply of banknotes could fall short of demand during the festive season. Rather than increasing the circulation of high-denomination notes, NRB plans to distribute the existing stock of Rs 100 notes across more locations through ATMs.
The move is expected to make smaller-denomination cash more easily accessible to the public during the festival season, when demand for cash traditionally rises.
NRB records show that ATM transactions currently amount to around Rs 80 billion to Rs 90 billion every month, highlighting the growing importance of ATMs in the country’s cash distribution system.
