ATM Update: Cash withdrawal from ATM increased by 6% in 5 years, yet banks closed thousands of ATMs..

Digital transactions are increasing continuously in the country, but meanwhile, record cash withdrawals from ATMs are also increasing. Along with this, banks have also expanded their branches rapidly across the country. According to RBI data, there were 1,30,176 bank branches in the country in 2021-22. By 2024-25, their number increased by 9.3% to 1,42,359. During this period, ATM withdrawals increased by 6% to about Rs 31 lakh crore, but amidst all this, banks are continuously reducing the number of their ATMs. Now the question arises as to why are banks reducing the number of ATMs, while cash withdrawals from bank branches and ATMs are continuously increasing. We are telling you about all this in detail here.

How many ATMs decreased in 5 years?

Of course, the number of bank branches in the country has increased from 1,30,176 to 1,42,359 in the last 5 years, but during this time banks have closed a very large number of ATMs across the country. According to RBI data, between 2022-23 and 2024-25, about 5 thousand ATMs have decreased in the country. Let us tell you that the number of ATMs owned by government, private and foreign banks was 2, 11,332 in 2020-21. In 2022-23, their number increased to 2, 16,629, but in 2024-25 it came down to 2,11,656.

Amid record cash circulation in the country, banks are reducing the number of cash recyclers along with ATMs. However, according to RBI, the demand for ATMs remains in rural and semi-urban areas with limited access to digital payments. Due to this, the withdrawal figures are also increasing. In the financial year 2024-25, a cash withdrawal of Rs 30.6 lakh crore was done from ATMs, whereas in the financial year 2020-21 this figure was 28.89 lakh crore.

Why are ATMs decreasing in the country

Banks are reducing ATMs due to costly maintenance. Industry experts say that running ATMs is an expensive task for banks, as maintenance costs including cash management and cassette swap are increasing. Digital transactions are increasing in the country. Due to this, the number of ATMs is decreasing.

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