Hybrid ATMs to End Change Woes: Exchange Large Notes for Smaller Ones

• The central government is exploring installing 'hybrid ATMs' across India to dispense smaller denomination notes (₹10, ₹20, ₹50).
• These new ATMs will allow users to insert large notes (e.g., ₹500) and receive smaller denominations, acting as money exchangers.
• A pilot project for these hybrid ATMs has already commenced in Mumbai to test their feasibility and functionality.
• Machines will be strategically placed in high-cash usage areas like markets, railway stations, and hospitals to benefit daily wage earners and vendors.
• The RBI is considering increasing the printing of smaller denomination notes to support this initiative and ensure adequate supply.

Why It Matters: Hybrid ATMs are being introduced to solve the problem of change, allowing large notes to be exchanged for smaller ones.