Regardless of the money in circulation being at an all-time excessive, banks are shutting down extra computerized teller machines and money recycler machines than they’re opening, amid the rising give attention to digital transactions and shopper desire in the direction of UPI for finishing up routine funds.

On the finish of September 2024, India had 215,000 ATMs versus 219,000 a yr earlier, as per knowledge from the Reserve Financial institution of India.

The majority of this fall has been in ATMs that aren’t positioned on the premises of financial institution branches – their quantity fell to 87,638 as of September 2024 from a peak of 97,072 in September 2022.

“The latest traits in ATM deployment mirror a shifting focus in India’s banking sector because it navigates the dynamic panorama of consolidation, digital transformation and enlargement into underserved areas,” mentioned Ravi B Goyal, chairman of AGS Transact Applied sciences, which offers on-line fee providers to retailers, fintech companies and banks. “Lately, public sector financial institution consolidation has led to extra optimised networks, mixing bodily and digital infrastructure.”

The autumn in ATM numbers comes at a time when money in circulation in India is ₹34.70 lakh crore, a 100% enhance because the demonetisation. Money transactions accounted for 89% of all offers in FY22.


Money in circulation accounted for 12% of India’s gross home product in FY22. However ATM penetration in India stays low with solely 15 such machines obtainable for 100,000 folks, as per a 2022 RBI report.RBI guidelines placing caps on free ATM transactions, ATM interoperability and sluggish development in interchange charge have made this a non-lucrative enterprise.India is following the worldwide mannequin of two ATMs per department (one on-site and the opposite off-site), mentioned Manjunath Rao, advisor-managed providers at money administration firm CMS Information Programs.

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