ATM Growth Flat While Bank Branches Rise: RBI Data FY21-FY25
Why in the news
Banks kept adding branches, yet ATM numbers hardly moved, reflecting a change in how Indians bank, with UPI at the centre.
Key facts
| Item | FY21 | FY25 |
|---|---|---|
| ATMs | 211,000 | 212,000 |
| Bank branches | 130,000 | 140,000 |
- Branches and ATMs are now expanding on separate tracks.
- Branches still anchor financial inclusion in semi-urban and rural India.
Why ATM growth slowed
- Behaviour: more customers use mobile and internet banking.
- Cost: cash handling, cassette swaps and maintenance are expensive.
- UPI: fewer small cash withdrawals, especially in cities.
- Strategy: banks, mainly private ones, shift money to digital and urban fintech channels.
Rural demand persists
- Strong need in Tier-II, Tier-III and rural areas.
- Digital access is limited and cash remains the main medium of exchange.
- Over 60% of India’s population lives in such areas.
Exam angle
- Data source: RBI.
- Terms: financial inclusion, UPI, cash handling.