Banks are increasing the number of atms in small towns and rural areas. , Banks increased number of ATMs in small towns-rural areas: strategy changed due to digital payment and rising cost; Currently 15 ATMs on 1 lakh people

Bank strategies are changing due to increasing use of digital payments and increasing cost of running ATMs in metros and big cities. The use of ATM in urban areas is decreasing and maintenance has become expensive.

In such a situation, banks are insisting on ATMs in small towns and rural areas. Bank officials say the income from urban ATMs is lower than the cost. The fare of 6 × 8 sq ft ATM space reaches Rs 40,000.

Monthly care costs in a city like Mumbai costs up to 1 lakh rupees. Apart from this, the ban on free withdrawal, interchange fees has also reduced the margin. Currently, there are 15 ATMs on 1 lakh people. Of these, 80% of these are in urban areas, while 67% of the population lives in rural areas.

Atm The number of decreases decreasing According to RBI data, the number of ATMs in the country decreased to 2.11 lakhs in 2024-25 after reaching the peak of 2.16 lakhs in 2022-23. In contrast, the number of bank branches has increased to 1.42 lakhs.

Putting ATMs in villages can be expensive. Despite this, bankers believe that ATMs are proving to be a loss deal in cities, so it is better to focus on rural areas.

Cash withdrawal from ATM has been decreasing for three years

Source: Rbi

These benefits of rural ATMs Easy access to local population cash micro, cost cost from mobile ATM. Cash withdrawal from ATM has been decreasing for three years.

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