Mumbai: The Reserve Bank of India (RBI) has asked banks to dispense more 100 notes through ATMs within the next 15 days.

In a notification on Wednesday, RBI asked banks to calibrate 10% of their ATMs to dispense 100 notes exclusively on a pilot basis.

“In keeping with the objectives of Clean Note Policy and to ensure that genuine requirement of members of public for Rs100 denomination banknotes are met, the banks should increase dispensation of Rs100 banknotes through ATMs which are widely used for distribution of banknotes for retail use," RBI said.

The move comes after the regulator observed that very few banks have taken steps to dispense lower denomination notes post RBI’s circular dated 5 May 2016. As per the circular, RBI introduced a scheme called the Currency Distribution & Exchange Scheme (CDES) under which the regulator agreed to incentivize banks for installing ATMs which dispense notes of denominations upto 00. As per the scheme, RBI had promised to reimburse 50% of the cost of ATM machine or 2 lakh whichever is lower.

RBI has now asked banks to speed up the process of configuring the ATMs in the next two weeks as it believes that this process is not complex. The regulator has also asked banks to share the feedback of the pilot project after a lapse of two months