NRB instructs BFIs to set ATMs to dispense Rs 100 notes ahead of festival

KATHMANDU: Nepal Rastra Bank (NRB) has instructed banks and financial institutions (BFIs) to configure automated teller machines (ATMs) to dispense Rs 100 banknotes.

The circular, issued by the NRB’s Currency Management Department on Tuesday, was sent to major umbrella bodies including the Nepal Bankers’ Association, the Development Bankers Association Nepal and the Financial Institutions Association (NFIA).

According to NRB Deputy Spokesperson and Assistant Information Officer Sudha Shrestha, technical measures are being put in place to enable withdrawals of Rs 100 notes directly from ATMs. The move is intended to reduce queues at bank counters during the forthcoming Dashain and Tihar festivals.

NRB and financial institutions expect that making smaller denominations available via ATMs will cut branch congestion, shorten customer processing times and improve distribution of cash liquidity during the peak holiday period.

In recent years the central bank has distributed clean notes rather than freshly printed currency for the festive season.

Until now most ATMs in Nepal have mainly dispensed Rs 500 and Rs 1,000 notes. Central bank officials said the new facility will not be available at every machine, as rollout depends on individual ATM hardware, cassette configurations and branch cash inventory management.

Banks will implement the changes according to each machine’s capacity and local cash planning, the NRB said.