People using Less ATMs to withdraw Cash? Banks Shifting their Focus

Are People using Less ATMs to withdraw Cash? As per reports, Bank are shifting their focus towards ATM.

Banks are changing their strategies due to the growing use of digital payments and the rising cost of running ATMs in big cities. Fewer people are using ATMs in urban areas, and maintenance costs have increased.

Because of this, banks are now focusing on setting up more ATMs in small towns and rural areas. According to bank officials, urban ATMs earn less money compared to their expenses. The rent for a small ATM space of 6×8 square feet can go up to ₹40,000 per month.

In cities like Mumbai, monthly maintenance costs can reach ₹1 lakh. Also, limits on free withdrawals and lower interchange fees have reduced profits. Currently, India has about 15 ATMs for every 1 lakh people. Around 80% of these ATMs are in cities, while 67% of the country’s population lives in rural areas.

According to RBI data, the number of ATMs in India reached a high of 2.16 lakh in 2022–23 but fell to 2.11 lakh in 2024–25. In contrast, the number of bank branches has increased to 1.42 lakh.

Installing ATMs in villages is costly. However, bankers say that urban ATMs are becoming loss-making, so focusing on rural areas makes more sense. In rural areas, the rent and maintenance costs are low.

Cash withdrawals from ATMs have been falling for the last three years.

Year	Withdrawals (₹ Lakh Crore)
2021	28.89
2022	31.05
2023	33.04
2024	32.59
2025	30.63

In urban areas, People are visiting ATMs less and paying more via UPI. Whereas ATMs are still required in Rural Areas. Rural People are still heavily dependant on Cash.

List of Number of ATMs of Banks 👇

Sr. no.	Bank Name	Aug-25
1	Abhyudaya Co-operative Bank	121
2	Airtel Payments Bank Ltd	0
3	Almora Urban Co-operative Bank Ltd.	30
4	ANZ Banking Group Ltd.	0
5	APNA Sahakari Bank ltd	50
6	AU Small Finance Bank	701
7	Axis Bank	13275
8	Bandhan Bank Limited	438
9	Bank of Bahrain and Kuwait	0
10	Bank of Baroda	11389
11	Bank Of India	7803
12	Bank of Maharashtra	2551
13	Bassein Catholic Co-operative Bank Ltd	80
14	Canara Bank	10826
15	Capital Small Finance Bank Limited (Formerly Capital Local Area Bank Ltd)	196
16	Catholic Syrian Bank	810
17	Central Bank of India	4169
18	Citizen Credit Co-Operative Bank	11
19	City Union Bank	1776
20	Coastal Local Area Bank	47
21	Cosmos Bank	174
22	DCB Bank Ltd	441
23	Deutsche Bank	15
24	Development Bank of Singapore	743
25	Dhanalakshmi Bank	282
26	Doha Bank	3
27	Dombivli Nagarik Sahakari Bank	73
28	Emirates NBD Bank	0
29	Equitas Small Finance Bank Ltd.	381
30	ESAF Small Finance Bank	716
31	Federal Bank	2085
32	Fino Payments Bank	0
33	Gopinath Patil Parsik Janata Sahakari Bank Ltd	84
34	HDFC Bank	21395
35	Hitachi Payment Services Pvt Ltd HPS	0
36	HSBC Bank	71
37	ICICI Bank	11847
38	IDBI Bank	2981
39	IDFC FIRST Bank Limited	977
40	Idukki District Co Operative Bank	45
41	India Post Payments Bank Limited	0
42	Indian Bank	5550
43	Indian Overseas Bank	3542
44	Indusind Bank	3056
45	Industrial Bank of Korea	0
46	Irinjalakuda Town Co-operative Bank Ltd	21
47	Jammu and Kashmir Bank	1586
48	Jana Small Finance Bank	61
49	JanaKalyan Sahakari Bank	41
50	Janaseva Sahakari Bank ltd	26
51	Janata Sahakari Bank	68
52	Jio Payments Bank Limited	0
53	Kallappanna Awade Ichalkaranji Janata Sahkari Bank	22
54	Kalyan Janata Sahakari Bank	46
55	Karnataka Bank	1493
56	Karur Vysya Bank	2215
57	KEB Hana Bank	3
58	Kotak Mahindra Bank	2790
59	Mahanagar Co-operative Bank	65
60	Maharashtra State Co-operative Bank	18
61	Mehsana Urban Co-operative Bank	41
62	Mumbai District Central CO-OP Bank Ltd.	29
63	New India Co-operative Bank Ltd.	40
64	NKGSB Co-operative Bank	106
65	North East Small Finance Bank Ltd.	9
66	NSDL Payments Bank Limited	0
67	Nutan Nagarik Sahakari Bank	0
68	Odisha State Cooperative Bank	14
69	Paytm Payments Bank Limited	10
70	Punjab and Sind Bank	1039
71	Punjab National Bank	11201
72	RAJARAMBAPU SAHAKARI BANK LTD PETH RAM	10
73	Rajkot Nagrik Sahakari Bank	42
74	Saraswat Co-operative Bank	353
75	SBM Bank (India) Ltd.	6
76	Shamrao Vithal Bank	219
77	Shinhan Bank	0
78	Shivalik Mercantile Co-operative Bank Ltd	25
79	Solapur Janata Sahakari Bank Ltd.	24
80	Standard Chartered Bank	145
81	State Bank of India	61599
82	SUCO SOUHARDA SAHAKARI BANK LTD	30
83	Suryoday Small Finance Bank Limited	0
84	Tamil Nadu State Apex Co-op Bank Ltd.	20
85	Tamilnaad Mercantile Bank	1481
86	Telangana State Cooperative Apex Bank	42
87	Thane Bharat Sahakari Bank Ltd	30
88	Thane Dist. Central Co-op. Bank	45
89	Thane Janata Sahakari Bank	161
90	The A.P. Mahesh Co-operative Urban Bank Ltd	17
91	The Ahmedabad Mercantile Co-op Bank Ltd	12
92	The Andhra Pradesh State Co-operative Bank Ltd	18
93	The Baramati Sahakari Bank Limited	34
94	The Bharat Co-operative Bank ltd.	104
95	The Burdwan Central Co-operative Bank Ltd	64
96	The Greater Bombay Co-operative Bank	22
97	The Gujarat State Co-op Bank Ltd	49
98	The Hasti Co-Op. Bank Ltd	21
99	The Kalupur Commercial Co-Op Bank Ltd	70
100	The Kangra Central Co-operative Bank Limited	129
101	The Karad Urban Co-operative Bank ltd	35
102	The Karnataka State Co-operative Apex Bank Ltd.	12
103	The Municipal Co-operative Bank Ltd	12
104	THE RAJASTHAN STATE COOPEARTIVE BANK LTD AS ISSUER	12
105	The Ratnakar Bank Ltd	415
106	The Satara District Central Co-op Bank	67
107	The South Indian Bank	1272
108	The Surat People’s Co-operative Bank Ltd	29
109	The West Bengal State Co-operative Bank Ltd	11
110	UCO Bank	2422
111	Ujjivan Small Finance Bank Limited	613
112	Union Bank Of India	9062
113	Unity small finance Bank Limited	196
114	UTKARSH Small Finance Bank	287
115	Uttar Pradesh Co-operative Bank Ltd.	17
116	Vasai Vikas Sahakari Bank Ltd.	24
117	Woori Bank	2
118	Yes Bank Ltd	1317
Total		210255