New Delhi: India’s off-site ATM count was down to 87,638 in September 2024 from a high of 97,072 in September 2022, according to RBI data. The overall ATM count in India stood at 2,15,000 in September 2024 from 2,19,000 in September 2022.
Indian banks are reportedly eyeing a more global model of ATM operation. Under this, every bank has just one on-site ATM and off-site ATM. Going forward, banks are expected to balance digital and cash infrastructure in line with customer requirements, the ET reported.
What led to decline in India’s ATM count
India’s ATM count has declined owing to a churn in the banking landscape. The industry is facing a consolidation while undergoing digital transformation, said AGS Transact Technologies’ chairman Ravi B Goyal. There has also been an expansion in banking services in India’s underserved regions, he added. Banks have gone phygital since India’s public sector banks were consolidated, he said.
Cash transactions continue to dominate
To be sure, cash remains king when it comes to everyday transactions in India, the ET reported, citing official data. Cash transactions comprised 89 per cent of all transactions in FY22. Nearly 12 per cent of the GDP is cash-based. Given this figure, it is startling that ATm penetration in India remains low at 15 machines to serve 1 lakh people, the ET reported.
How RBI rules are affecting ATM count
The Reserve Banl of India’s stringent regulatory stance may also have a role to play when it comes to India’s ATM count, according to the report. The RBI has tightened rules related to free ATM transactions as well as interoperability of such facilities between banks. The RBI has also raised the ATM interchange fee to Rs 17 in recent years, which may have again affected ATM viability.
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