The number of automated teller machines (ATMs) in India declined moderately in FY25 as the shift towards digital payments continued to reshape customer behaviour, according to the Reserve Bank of India’s Trend and Progress of Banking in India report for the year.
As per the report, the total number of ATMs as of 31 March 2025 was 2,51,057, compared to 2,53,417 ATMs in the previous year.
Private banks lead ATM consolidation
Private sector banks recorded the sharpest decline in ATM numbers, down to 77,117 in FY25 from 79,884 in FY24. Public sector banks, which continue to operate the largest ATM network, saw their count fall to 1,33,544 in FY25 from 1,34,694 in the previous fiscal.
According to the RBI, both public and private sector banks shut down off-site ATMs as customers increasingly relied on digital payment channels for routine transactions. The central bank noted that the growing digitisation of payments has reduced the need for cash withdrawals through ATMs.
In contrast to bank-owned networks, independently operated white-label ATMs expanded during the year, rising to 36,216 from 34,602.
Urban skew persists in private bank ATM networks
The report further added that while Public sector banks maintained a balance in the ATM presence across different demographics, Private sector and foreign banks continued to concentrate their ATM networks in urban and metropolitan centres.
Branch expansion continues despite digital shift
The total number of bank branches increased to 1.64 lakh as of March 31, 2025, marking a growth of 2.8% over the previous year.
Public sector banks led branch expansion during the year. Their share in new branch additions rose, while the share of private banks declined to 51.8% from 67.3% a year earlier. More than two-thirds of the branches opened by public sector banks were located in rural and semi-urban areas, compared with 37.5% for private banks.
Jan Dhan accounts and deposit coverage
The number of basic savings bank deposit accounts increased by 2.6% during FY25 to 72.4 crore, while the aggregate balance in these accounts rose by 9.5% to Rs 3.3 lakh crore. The RBI said most of these accounts continued to be operated through the business correspondent model, underlining its effectiveness in extending banking services at the grassroots level.
On deposit insurance, the RBI noted that 97.6% of accounts were covered under the current insurance framework as of end-FY25, even as policymakers consider raising the coverage cap beyond Rs 5 lakh per account. However, measured by insured deposit value, coverage declined to 41.5% at end-March 2025 from 43.1% a year earlier.