“In keeping with the objectives of the Clean Note Policy and to ensure genuine requirements of members of the public for Rs 100 denomination banknotes are met, the banks should increase dispensation of Rs 100 banknotes through ATMs which are widely used for distribution of banknotes for retail use,” the central bank said in a notification.

“With a view to encouraging the banks in that direction, it has been decided to conduct a pilot project wherein 10 percent of the ATMs in the country will be calibrated to dispense Rs 100 banknotes exclusively.”

The Reserve Bank further said banks are, therefore, advised to configure/calibrate 10 percent of ATMs to facilitate this arrangement.

The central bank recently had conducted a review of steps taken by banks for installing ATMs dispensing lower denomination banknotes.

Noting that the process of configuring the requisite number of machines is not complex, RBI said the banks are required to complete the exercise within 15 days from the date of the circular and report compliance.

“For this purpose, banks are free to select the branches with the sample covering relatively large number of centres/ states,” it said.