Why Are ATM Numbers Declining in India? RBI Report Reveals Shocking Trends - Read Now
India's ATM market is contracting even as cash transactions are increasing. The RBI in its latest report informed that the number of ATMs in the country has been consistently reducing during the last one year. It had 219,000 ATMs during September 2023 which had come down to 215,000 by September 2024. This is because the off-site ATMs are contracting which have come down from 97,072 to 87,638 during the same period.
Although the use of cash has peaked in India, with circulation of cash marking a record rise, demand for ATMs is seeing a decline. The growth in digital payments, especially through Unified Payments Interface, or UPI, has been cited as one of the major reasons that have caused ATM usage to decline. People are increasingly opting for UPI transactions for faster, cashless, and more convenient payments.
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As per the RBI figures, India's number of ATMs is not growing proportionately with an increase in cash circulation. It can be rightly said that the popularity of UPI and other digital payment modes has already taken ATMs to almost a worryingly declining streak. Mobile wallets, QR codes, and even digital payment platforms have made banking easy, especially in urban regions.
Even in the smaller cities and the countryside, the trend is a decrease in fewer ATMs. According to media reports, the number has further plummeted to a mere 15 per 100,000 average at present.
Though cash transactions still form a major portion of India's economy, however with cash constituting 89% of FY 2022, the shift towards digital payments is very clearly moulding the face of banking in India.
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