UPI, RBI rules …: Why Banks are shutting down ATMs

Despite a record-high cash circulation, India’s banks are reportedly increasingly phasing out ATMs and cash recyclers. According to a report in Economic Times, this shift is driven by the growing popularity of digital payments, particularly UPI, and a strategic focus on digital transformation.
According to RBI data, the number of ATMs in India decreased from 219,000 in September 2023 to 215,000 in September 2024. This decline is primarily due to a significant reduction in off-site ATMs, which fell from a peak of 97,072 in September 2022 to 87,638 in September 2024.