INFRASTRUCTURE
ATM number shrinks in FY25 with surge in digitalisation, private banks lead in closure
- IBJ Bureau
- Dec 30, 2025
Number of automated teller machines (ATMs) has declined in FY25, reflecting an increasing adoption of digital payments, according to the Reserve Bank of India’s (RBI) Report on Trend and Progress of Banking in India.
The total number of ATMs has fallen to 2,51,057 as of March 31, 2025, from 2,53,417 a year earlier. The decline is 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 closure of offsite ATMs by both bank groups.
“The increase in digitisation (sic) of payments has reduced customers’ requirement for transacting through ATMs,” the RBI has said. Banking industry sources note that the cost of operating ATMs remains high, resulting in rationalisation of ATM operations.
In contrast, the number of independently-operated, white-label ATMs has increased to 36,216 from 34,602 in the year-ago period, reflecting interest from non-bank entities in the segment.
Public sector banks have maintained a relatively-even distribution of ATMs across rural, semi-urban, urban and metropolitan areas. Private sector and foreign banks, however, continue 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 by 2.8 per cent to 1.64 lakh as of March 31, 2025.
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