India, Jan. 27 -- The government is exploring multiple ways to push more small-denomination currency notes into circulation, at a time when UPI is increasingly making digital payments ubiquitous in the world's fourth largest economy.

The ideas include new automated teller machines, or ATMs, that can dispense Rs.10, Rs.20 and Rs.50 currency notes and not just Rs.100 and Rs.500 notes, Mint reported on Tuesday (27 January 2026), citing people aware of the matter. Also under consideration are so-called Hybrid ATMs that can exchange large notes for small notes.

"A prototype of low-denomination currency dispensing machines is currently being tested under a pilot project in Mumbai," one of the people cited above told Mint on the condition of a...