Banks shut down 1,817 ATMs since July, shows RBI data

As per the data available with the Reserve Bank of India (RBI), the number of ATMs across the country stood at 2,06,659 at the end of February 2018. At the end of June 2017, the country had 2,08,477 ATMs. This means a reduction of 1,817 ATMs since July last year.
Highlights: 
The number of ATMs across the country stood at 2,06,659 at the end of February 2018.
During the month of February, the ATMs across the country saw 71.9 crore transactions from 66.84 crore in June last year.
In Karnataka alone, various banks have closed 120 ATMs in a span of just six months.

In what could be considered a cost cutting measure, commercial banks across the country have closed in excess of 1,800 automated teller machines (ATMs) in a span of eight months.

As per the data available with the Reserve Bank of India (RBI), the number of ATMs across the country stood at 2,06,659 at the end of February 2018. At the end of June 2017, the country had 2,08,477 ATMs. This means a reduction of 1,817 ATMs since July last year.

Although the number of ATMs has declined, yet the number of ATM transactions across the country has grown by 7.6% on a monthly basis during the period of eight months. 

During the month of February, the ATMs across the country saw 71.9 crore transactions from 66.84 crore in June last year. The number of debit cards has also jumped by 5.79 crore between June 2017 and February 2018 to 85.84 crore from 79.76 crore.

According to experts, banks are looking for more profitability by having lesser number of ATMs.

“Customer service is one thing. But we have to also look after our profitability, which has been hit of late. So just like our branches, we are consolidating our ATMs,” said a chairman of a public sector bank, who did not wish to be named.

In Karnataka alone, various banks have closed 120 ATMs in a span of just six months. While there were 16,907 ATMs in the State at the end of June 2017, the number dwindled to 16,787 in December 2017. The state has the fourth highest concentration of ATMs across the country.

Vivek Belgavi, Partner of FinTech at PwC India, attributes this phenomenon to consolidation as well as increase in the alternative means of payment. The country has been reeling under severe cash crunch of late as it is short of about Rs 2 lakh crore of cash. Many experts attribute the reduction in the number of ATMs as one of the reasons for cash crunch.

“Usually at any given point in time only 75% of total number of ATMs are functional. Since demonetisation, the situation has worsened,” a bank official added.

Liked the story?

  • 0

    Happy
  • 0

    Amused
  • 0

    Sad
  • 0

    Frustrated
  • 0

    Angry

Comments:

Banks shut down 1,817 ATMs since July, shows RBI data

0 comments

Write the first review for this !