Rural centres emerge as new frontier for banks' ATM expansion drive

According to industry experts, maintaining ATMs for banks has become an expensive task in urban cities as most ATMs remain idle with people using less cash amid rise in UPI transactions

With automated teller machine (ATM) usage declining due to rising digital payments and operating costs climbing in metro and urban centres, banks are shifting their focus to installing more ATMs in semi-urban and rural areas, where costs remain relatively lower, according to senior banking executives. 

“The focus is on rationalising ATM numbers and locations. Many ATMs aren’t profitable, and footfalls are low. So, we’re either closing them or relocating them to semi-urban and rural areas,” said a senior executive with a state-owned bank. 

Industry experts say maintaining ATMs has become increasingly expensive in urban