RBI Alert: The ATM near your home might also be shut down! Banks have completely changed their system due to digital payments..

The country's banking system is rapidly changing, and its effects are now clearly visible. A report from the Reserve Bank of India (RBI) has revealed some surprising findings. According to this report, while the number of new bank branches is continuously increasing, the number of ATMs is rapidly declining.  The growing trend of digital payments has pushed cash transactions into the background, and this has directly impacted the ATM network.

How many ATMs decreased in 2024-25?
According to this report, the total number of ATMs across the country declined during the financial year 2024-25. By March 2025, approximately 251,057 ATMs were active across the country, compared to 253,417 in March 2024. This means that nearly 3,000 ATMs were shut down in just 12 months. This data clearly shows that people are conducting far fewer cash transactions than before and are mostly making payments through UPI, cards, and net banking.

Which ATMs saw the biggest decline?
The biggest decline was observed in the ATM network of private banks.  A year ago, private banks had approximately 79,884 ATMs, which have now decreased to around 77,117, a reduction of about 2,500 ATMs. Similarly, the number of ATMs of public sector banks also decreased from approximately 134,694 to 133,544, meaning about 1,000 ATMs have been shut down. The reason cited for this is that banks have adopted a strategy of reducing ATMs to save on maintenance costs and promote digital payments.

White Label ATMs show growth.
However, one significant change observed during this period is that the number of independently operated White Label ATMs (WLAs) in the market has increased to approximately 36,216. These are essentially ATMs operated by private operators rather than banks, and they are gaining increasing popularity, especially in smaller cities and towns.

Bank Branches See Significant Growth
On the other hand, the number of bank branches has shown strong growth. In fact, bank branches in India increased by 2.8% in the last financial year, reaching a total of approximately 1.64 lakh branches.  Significantly, public sector banks played the most crucial role in opening new branches, with almost two-thirds of their new branches located in rural and semi-urban areas, while the contribution of private banks decreased from approximately 67.3% to 51.8%.

Digital Systems Undermining the Role of ATMs
Overall, this report clearly indicates that India's banking system is undergoing a major transformation. The focus is now shifting towards a cashless economy, digital transactions, and network expansion, while the use of ATMs is gradually declining.

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