The great disconnect: More bank branches, and same old ATM count

ATM growth remains flat despite rising branch expansion as digital payment preferences and high ATM maintenance costs reshape banking strategy

Even as banks continue to expand their physical branch networks, the growth of automated teller machines (ATMs) has stagnated — largely due to a shift in customer preference towards digital payments. However, branches remain a critical touchpoint for deposit mobilisation and addressing customer grievances, particularly in rural areas where access to digital services may still be limited, experts said.

 

According to Reserve Bank of India (RBI) data, the total number of ATMs owned by public, private, and foreign banks increased to 212,000 in 2024–25 (FY25), compared to 211,000 in 2020–21 (FY21). During this period, the number of bank branches rose