Despite an unprecedented rise in cash circulation, Indian banks are reducing the number of ATMs and cash recyclers, driven by the shift towards digital payments, especially UPI. From September 2023 to September 2024, the ATM count dropped from 219,000 to 215,000, with a significant decrease in off-site ATMs.

BulletsIn

• Over 4,000 ATMs removed as banks push digital payments.
• ATM count dropped from 219,000 (2023) to 215,000 (2024).
• Off-site ATMs saw the biggest reduction, down by nearly 10,000.
• UPI growth, with more users adopting digital transactions.
• RBI rules on free ATM usage, interchange fees deter investment.
• Only 15 ATMs per 100,000 people, impacting rural access.
• Industry shift toward a “hybrid” branch model with fewer ATMs.
• Public sector bank consolidation aiding digital transformation.
• Experts suggest future branches may operate only 2 ATMs each.
• Consumer demand for cashless payments influences banks’ shift.