Kathmandu, October 1, 2026 — Banks and financial institutions have started dispensing new Rs 100 notes through selected ATMs following a directive from Nepal Rastra Bank, making smaller-denomination cash more accessible ahead of Dashain.
Dashain begins with Ghatasthapana on October 11. Until now, most ATMs in Nepal have primarily dispensed Rs 500 and Rs 1,000 notes, meaning customers seeking smaller denominations generally had to visit bank counters.
The service, which began on Wednesday, is currently available at selected locations in the Kathmandu Valley. Nepal Rastra Bank Executive Director and Currency Management Department chief Anuj Dahal said technical arrangements had been made at ATMs in locations including Durbar Marg, Singha Durbar and New Road to dispense new Rs 100 notes. He said the initiative was particularly intended to make cash access easier for students and low-income customers.
According to the central bank, banks have informed it that 15 to 25 percent of their ATMs can be configured to dispense Rs 100 notes. The facility is not available at every ATM because it depends on the machine's technical capacity and cash-cassette configuration.
Many older ATMs have two cash cassettes, generally used for Rs 500 and Rs 1,000 notes, making it difficult to accommodate another denomination. Newer machines commonly have three or four cassettes, allowing banks to configure an additional cassette for Rs 100 notes.
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During Dashain, Tihar and Chhath, demand for smaller and new notes traditionally increases, often leading customers to queue at bank counters to exchange larger denominations.
Nepal Rastra Bank's Currency Management Department had asked the Nepal Bankers' Association to make arrangements for Rs 100 notes to be distributed through ATMs. Copies of the directive were also sent to the Development Bankers Association Nepal and the Nepal Financial Institutions Association. The move is intended to reduce congestion at bank branches and make smaller denominations more accessible during the festive period.
The central bank expects the arrangement to make cash withdrawals more convenient for people who need smaller amounts or change while reducing the traditional rush at bank counters ahead of Dashain.