Summary:

Indian banks are reducing the number of ATMs and cash recyclers as digital payments, especially UPI, grow in popularity, shifting the focus to digital banking. According to RBI statistics, ATMs decreased from 219,000 in September 2023 to 215,000 in September 2024, while off-site ATMs dropped from 97,072 in 2022 to 87,638 in 2024. The Chairman of AGS Transact, Mr. Ravi B. Goyal, views this shift as part of the banking sector's digital revolution.

Despite cash transactions accounting for 89% of activity in FY22 and contributing 12% to GDP, ATM access remains limited, with only 15 per 100,000 people. The RBI’s restrictions on free ATM usage, interoperability, and fees have constrained ATM infrastructure development. To balance digital and physical banking, banks may adopt a model of two ATMs per branch—one on-site and one off-site. Since the first ATM was installed by HSBC in Mumbai in 1987, ATMs have significantly expanded banking access and transformed India’s financial landscape.

Source: IBEF 

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