RBI has vide its notification dated 7th sept 2018 enabled exchange of mutilated notes in the Mahatma Gandhi (New) series at bank branches and RBI offices. Exchange can be done even if the notes are smaller in size compared to earlier series.
RBI has goofed up by changing the size of the currency note without understanding its ramifications especially with respect to the size of the trays in the ATM machines. They perforce have to issue a notification in this regard because otherwise bankers will be clueless and in the end result, the commoners will suffer due to the ignorance of the bankers and the consequent harassment that follows.
RBI notification can be accessed at their site.