The number of automated teller machines (ATMs) has declined in FY25, reflecting the increasing adoption of digital payments, according to the Reserve Bank of India’s Report on Trend and Progress of Banking in India released on Monday.
The total number of ATMs fell to 2,51,057 as of March 31, 2025, from 2,53,417 a year earlier. The decline was driven largely by private sector banks, whose ATM network reduced to 77,117 from 79,884 in the previous year. Public sector banks also reported a marginal fall in ATMs to 1,33,544 from 1,34,694, mainly due to the closure of offsite ATMs by both bank groups.
“The increase in digitisation of payments has reduced customers’ requirement for transacting through ATMs,” the RBI said. Banking industry sources said that the cost of operating ATMs remains high, resulting in the rationalisation of ATM operations.
In contrast, the number of independently operated white label ATMs increased to 36,216 from 34,602 in the year-ago period, reflecting interest from non-bank entities in the segment.
Public sector banks maintained a relatively even distribution of ATMs across rural, semi-urban, urban and metropolitan areas. Private sector and foreign banks, however, continued to have a higher concentration of ATMs in urban and metropolitan centres.
Despite the rapid expansion of digital channels, banks continued to add physical branches in FY25. The total number of bank branches rose 2.8 per cent to 1.64 lakh as of March 31.
Public sector banks were more aggressive in opening new branches, while the share of private banks in new branch additions declined to 51.8 per cent from 67.3 per cent a year earlier.