Nepal Rastra Bank Directs ATMs to Dispense Rs 100 Notes Ahead of Dashain and Tihar

15th September 2026, Kathmandu

Nepal Rastra Bank has officially issued a directive instructing banks and financial institutions across Nepal to configure automated teller machines to dispense Rs 100 denomination banknotes ahead of the upcoming Dashain and Tihar festival season.

NRB’s Direction to ATMs 

The directive aims to improve public access to smaller denomination currency notes and streamline cash distribution during peak holiday shopping and traditional gift-giving periods.

Central Bank Coordination With Banking Associations

The Currency Management Department of Nepal Rastra Bank has communicated the directive to major umbrella organizations representing financial institutions in Nepal. The central bank urges the Nepal Bankers Association, the Development Bankers Association Nepal, and the Nepal Finance Companies Association to coordinate with member entities to make necessary technical arrangements.

Under the directive, member commercial banks, development banks, and finance companies must configure compatible ATM hardware to stock and distribute Rs 100 banknotes to account holders.

Shift From High Denomination ATM Dispensing

Traditionally, automated teller machines across Nepal have primarily dispensed higher denomination currency notes, specifically Rs 500 and Rs 1,000 bills. Customers requiring smaller notes for routine payments, regional travel, micro-transactions, or festival rituals were typically required to visit physical bank branches to exchange larger bills over the counter.

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By enabling automated teller machines to dispense Rs 100 notes, the central bank provides an automated channel for smaller denomination cash retrieval. The deployment will depend on individual machine capabilities, cassette configurations, and branch-level cash inventory management.

Addressing Festival Season Crowd Management

The upcoming Dashain and Tihar festivals represent the peak annual period for physical cash transactions in Nepal. During this time, consumer demand for smaller currency notes increases significantly for household expenses, local transport, market purchases, and ritual cash gifts.

In previous years, heavy demand for small notes created long queues at bank counters and placed substantial operational pressure on branch staff. Central bank officials noted that dispensing Rs 100 notes directly through automated machines will mitigate branch congestion, save customer processing time, and distribute cash liquidity effectively across urban and regional markets.

Key Highlights of the ATM Small Note Directive

• Central Bank Division: Currency Management Department of Nepal Rastra Bank
• Targeted Denomination: Rs 100 Banknotes
• Targeted Entities: Commercial Banks, Development Banks, Finance Companies
• Coordinating Bodies: Nepal Bankers Association, Development Bankers Association Nepal, Nepal Finance Companies Association
• Primary Purpose: Enhance public convenience, reduce physical branch counter congestion, and meet festive cash demand
• Technical Mechanism: Reconfiguration of ATM cash cassettes and dispensing logic

Operational Considerations for Account Holders

While Nepal Rastra Bank has requested nationwide implementation, the actual availability of Rs 100 notes will vary across different ATM locations depending on machine configuration capabilities, bank vault allocation, and replenishment schedules. Account holders are advised to utilize participating ATMs for routine small denomination withdrawals during the festive period to minimize reliance on physical branch counters.

For More: NRB’s Direction to ATMs