With the increasing expansion of UPI in the country, you may feel that the need for cash payments and cash has reduced, however, this is not the case. While cash circulation in the country is at a high level, the number of ATMs and cash recyclers of indian banks is decreasing. There are many reasons behind this, which you can know about here...
Why are ATMs decreasing in the country?
According to a report published in the Economic Times, digital payments are increasing in the country and UPI is playing a very big role in this too. Apart from this, due to the strategic focus on wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital transformation in the cities here, the number of ATMs and cash recyclers is decreasing, that is, under the wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital mission, the focus is on reducing the circulation of cash.
What do RBI figures say?
According to the data of the Reserve bank of india, the number of ATMs in india has decreased significantly. In september 2023, the number of ATMs was 2,19,000 and in september 2024 this number has come down to 2,15,000. This reduction in the number of ATMs is mainly due to the reduction in the number of off-site ATMs. In september 2022, the total number of off-site ATMs was 97,072 and by september 2024 it has come down to 87,638 i.e. 9434 ATMs have been reduced in it.
RBI rules also reduced the number of ATMs
Ever since the Reserve bank has reduced the number of free cash withdrawals from ATMs and increased the interchange fee on withdrawing cash from ATMs, the number and trend of cash withdrawals from ATMs has declined. On this basis, RBI also keeps an eye on the utility of ATMs.
The number of ATMs in the country is less than global competition
There are only 15 ATMs in the country in proportion to one lakh people and this is also less because the rules for installing ATMs are very strict and expensive. If we look at it on a global scale, then the ATM infrastructure in india appears to be very weak.
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