India now has 2.51 lakh ATMs:2,360 cash machines shut in a year as private banks lead closures amid rising digital payments

The growing use of digital payment platforms is steadily reducing dependence on cash, leading to a decline in the number of ATMs across the country. According to the Reserve Bank of India’s Trends and Progress of Banking in India report, 2,360 ATMs were shut during FY2025. As of March 31, 2025, India had 2,51,057 ATMs, down from 2,53,417 in FY2024. The RBI noted that customers are increasingly relying on digital channels for day-to-day transactions, reducing the need for cash withdrawals and, in turn, ATMs. Private Banks Lead ATM Closures Private sector banks accounted for the largest reduction in ATM numbers, with their network shrinking from 79,884 to 77,117. Public sector banks, which continue to operate the largest ATM network, also saw a decline—from 1,34,694 to 1,33,544. The RBI added that both public and private banks have been closing off-site ATMs, particularly in urban areas. However, while bank-owned ATM numbers declined, independently operated white-label ATMs increased from 34,602 to 36,216, partially offsetting the overall drop. Public Sector Banks Drive Branch Expansion Even as ATM numbers decline, the total number of bank branches in the country has continued to rise. As of March 31, 2025, India had 1.64 lakh bank branches, marking a 2.8% increase over the previous year. Public sector banks led this expansion, increasing their share in new branch openings. In contrast, the share of private banks fell from 67.3% last year to 51.8%. Public sector banks also focused more on financial inclusion, with over two-thirds of their new branches opened in rural and semi-urban areas. Private banks, however, opened only 37.5% of their branches in these regions, continuing to concentrate largely on metropolitan and urban centres. ​