Any Time Money: Why ATMs continue to matter in India's digital age

Despite UPI's rise, growing cash circulation and evolving consumer habits ensure ATMs remain integral to India's payment ecosystem

“Fault lines are deepening in the ATM business,” read the headline of a story in this paper, which presented the operational issues that are coming to a head in the sector (June 1, 2026).  

ATMs (automated teller machines), like all other technology-aided devices, came to India late. While ATMs became part of banking operations in the United States (US) in the late 1960s, it was more than 25 years later that they made an entry into India.  

The first ATM in India was set up by Hong Kong Bank in Mumbai in 1987. The advertising for the ATM that appeared in the leading newspapers positioned ATMs as ‘Any Time Money’. The term stuck and, in a charming way, made the machine feel almost human. To feel the difference, say ‘Automatic Teller Machine’ and ‘Any Time Money’ in quick succession. Finally, you had a place where you could get money at any time of the day or night (remember, those days there used to be a security guard outside every ATM?). 

For those who may not be aware, withdrawing money from a bank back then called for a visit to the branch. You filled out a slip (or a cheque), picked a token, and waited for your number to flash. Depending on the branch, your wait could be for ten minutes — and god forbid if it was the ‘tea break’ or ‘lunch break’, which made your wait a lot longer. (Even the concept of a ‘Teller’, to dispense cash, came to India only in the 1970s). Finally, you walked out with a wallet full of your own cash, with a proud smile.  

ATMs made the job of withdrawing your money so painless that it no longer felt like an achievement. From a start in 1987, today the total number of ATMs in India is around 265,000.  

ATMs were probably the first big sign of customer-facing automation in banking. In the US there was widespread fear that ATMs will lead to job losses in the banking industry. But research has now shown that bank branches grew during the phase of ATM expansion. How come? With the setting up of ATMs, banks could open a branch with significantly fewer staff. As a result, US banks expanded their branch network parallel to the ATM expansion in the 1980s/1990s.  

In India, there used to be a fear, expressed by the bank employee unions, that automation and computers will lead to job losses. That too was an unfounded fear. As of now there are more than 165,000 bank branches. A large number of ATMs are also located on the same premises, or next door, to the bank branch.  

The use of ATMs has also been aided by the thrust of the government towards direct money transfer. This has led to the opening of millions of bank accounts, each with a debit card for quick withdrawal of cash, often from an ATM.  

Consumers have been rapidly adopting the use of ATMs — to the extent they even identify those ATMs that can dispense notes of their choice. If it means a short walk down the road, so be it.  

ATMs today sit at an interesting junction. With overall GDP growth and increased bank penetration, there is going to be demand for more and more ATMs. The use of ATMs has moved from just being cash dispensing machines to cash recycling machines and more.  

On a parallel path there has been a trend towards digital payments through UPI-enabled apps. One would have expected a rapid reduction in the use of cash. But contrary to those expectations, cash in circulation has grown by 11 per cent in 2025-26 (RBI Annual Report).  

If cash is still in circulation, the usefulness of ATMs is not going to vanish anytime soon.  

The middle class Indian is today spoilt for choice. Cheque. Credit card. Debit card. Cash. UPI. RTGS. How do they navigate this? Consumers are creating their own rules on what to use when.  

Working with a payment platform, I discovered that UPI is not always the first choice for all payments. The use of UPI is often for smaller amounts — in the less than ₹5,000-league. Consumers select credit cards if they are keen on collecting reward points; I know of someone who decided to pay a multi-lakh fee to a hospital through her credit card. Big payments are through RTGS or cheque.  

These choices will also depend on the affluence of the consumer and their attitude towards different payment modes. A tech-savvy consumer today can use their mobile phone for a number of transactions that may have called for a visit to the bank and the ATM.  In all this rapid change, what is indeed amazing is the universal acceptance of ATMs across the country. That was an indication that UPI too will find universal acceptance. And it has. 

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The writer is an author, independent brand strategist and founder brand-building.com; ambimgp@brand-building.com