Mumbai
Previous bankers in the country said that the use of cash has reduced with the emergence of UPI and cards as payment tools. Due to this, ATMs have become impractical. The number of ATMs has declined for the first time in five years. Automated Teller Machines (ATMs), which provide relief from long queues to withdraw cash in banks, are now becoming less common. Due to the merger of banks in 2020, the number of ATMs decreased. At the same time, after demonetization on 8 November 2016, people immediately adopted Unified Payment Interface (UPI).
Due to its increasing popularity, people’s access to ATM started decreasing. The situation is such that in just 9 years, 274 ATMs have been reduced in the state. When the facility of making payments through UPI became available in big and small showrooms including vegetable, fruit, grocery, electricity and gas bills, people started staying away from ATMs. Due to this, transactions at ATMs decreased and the profits of banks decreased and the cost of maintenance of the machines increased.
Banks started closing ATMs
As a result, banks started closing ATMs. With the increasing use of UPI, while the banks’ concerns regarding the security of cash have reduced, the Reserve Bank of India’s cost of reprinting currency in case of damage during cash transactions has also reduced. Although the number of ATMs definitely increased during the Corona period, its decline has continued since 2019. Banks say that they are not closing ATMs, they are shifting them when new technology comes.
This much expenditure on every ATM
It costs around Rs 6-9 lakh to install an ATM. A machine costs Rs 4-8 lakh and some expenses on interior decoration. Also, the bank spends Rs 50,000 every month on the maintenance of each ATM. This includes the cost of cleaning, electricity, AC and security guard. It is said that one transaction costs around Rs 18 to 20.
That’s why ATMs decreased
Due to merger of banks their ATMs became one. Facility to withdraw money from ATM of any bank in computerized system. The machines which reduced transactions were closed or shifted. With the use of UPI, people’s access to ATMs reduced.
This is how UPI is increasing in the country
83,453.79 million in transactions 2022-23
130831.45 million in transaction 2023-24
Transactions 117507.31 million transactions in 2024-25 (till November)
The glory of UPI
Chaudhary said India has seen significant growth in financial inclusion and digital payments in the last nine years. This has happened due to the spread of Jan Dhan Yojana, UPI and widespread adoption of mobile internet. UPI transactions have increased 25 times in the last five years. It was Rs 535 crore in the financial year 2018-19, which increased to Rs 13,113 crore in the financial year 2023-24. More than 8,566 crore UPI transactions worth Rs 122 lakh crore have been registered in the financial year 2024-25 (till September).
through the lens of history
Earlier, there used to be long queues in banks to withdraw money. To get rid of this, HSBC Bank installed ATM for the first time in Mumbai in 1987, which brought about a big revolution in banking. In just 10 years there were 1500 ATMs in the country. Currently there are 2.50 lakh ATMs in the country.
Capital’s scope increased, ATMs increased
Bhopal is the only district in Madhya Pradesh where the number of ATMs has increased. With the expansion of the capital, rural areas were connected and the number of ATMs increased. At present there are 1079 ATMs in Bhopal district. Of these, 42 are in rural areas, 15 in towns and 1022 in cities.
ATM in the state
year number
2016 – 9266
2017 – 9263
2018- 9579
2019 – 9345
2020 – 9201
2021 – 9322
2022 – 8812
2023 – 9328
2024 – 8992 (by September)
