look news india
In this era of digital era, on one hand, cashless transactions are rapidly gaining momentum and making people's everyday life easier. On the other hand, people are now using cash as well as ATMs less. The main reason behind this change is the emergence of UPI payments. UPI i.e. Unified Payments Interface has made transactions easier and faster, thereby reducing the need for cash withdrawal.
The trend of digital payment is increasing rapidly in the country. Due to which the use of ATM has reduced. RBI has also published a report in this regard.
Continuous decline in the number of ATMs in India
According to the data released by RBI, there has been a huge decline in the number of ATMs in the country. The number of ATMs in India is expected to decline from 219,000 in September 2023 to 215,000 in September 2024. This decrease is primarily due to the reduction in off-site ATMs. These ATMs decreased from 97,072 in September 2022 to 87,638 in September 2024.
Why are ATMs declining?
According to media reports, emphasis has been laid on digital payments in the country for some time. People find it very easy to make digital payments, so in a short time it has become very popular across the country. UPI also plays a big role in the decreasing number of ATMs of banks. The popularity of ATM has declined significantly in recent times. ATM penetration among the people is still low, with reports suggesting that there are only 15 ATMs per 100,000 people in the country.
Impact of RBI Regulations
Cash in the country still plays an important role in the Indian economy. In FY 2012, cash transactions contributed 89% of transactions and 12% of GDP. But RBI regulations on ATM transactions and interchange charges have had a deep impact on ATMs. According to an Economic Times report, this shift is driven by the growing popularity of digital payments, especially UPI, and the strategic focus on digital transformation.