Lok Sabha Question No. 1069 (UNSTARRED), answered on 2024-12-02
Subject: Reasons for Closure of ATMs
Ministry: FINANCE
Asked by: Shri Mani A

## 1069. Shri Mani A:

Will the Minister of FINANCE be pleased to state:

- (a) the total number of ATMs in operation across the country along with the details of ATMs which have closed in the last five years;
- (b) whether the Government has any specific policy or directive regarding ATM reduction along with the reasons for the closure of ATMs;
- (c) whether the Government has conducted any assessment on the impact of ATM closures on financial inclusion, especially in rural and semi-urban areas;
- (d) the  measures  taken/being  taken  to  ensure  people  living  in  areas  having  limited  banking infrastructure continue to have access to cash and banking services;
- (e) whether the Government has any plans to increase the number of mobile banking units or banking correspondents in areas where ATMs have been closed and if so, the details thereof; and
- (f) the steps taken/being taken to encourage digital literacy and facilitate digital transactions in regions affected by closure of ATMs?

## Answer

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

(a) to (f) As per the Reserve Bank of India (RBI) policy on 'Rationalization of Branch Authorization Policy',  Banks  are  allowed  to  set  up  onsite/offsite  Automated  Teller  Machines  (ATMs)  at centres/places identified by them, including Special Economic Zones.

There has been a steady growth in deployment of ATMs in the country in last 5 years. The total number of ATMs has increased by 12% in the last five years with an increase of 66% in semi-urban & rural areas of the country. The year-wise data in the country is as under:

| Date   |   Metro |   Urban |   Semi-Urban |   Rural |   Total |
|--------|---------|---------|--------------|---------|---------|
| Sep-19 |   50210 |   41413 |        44051 |   33645 |  227886 |
| Sep-20 |   61229 |   59371 |        66077 |   47567 |  234244 |
| Sep-21 |   62574 |   64248 |        67007 |   47153 |  240982 |
| Sep-22 |   68091 |   59243 |        72879 |   54505 |  254718 |
| Sep-23 |   68291 |   59581 |        74683 |   55385 |  257940 |
| Sep-24 |   67224 |   59018 |        74650 |   54186 |  255078 |

Source: RBI

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION NO. 1069

ANSWERED ON MONDAY, DECEMBER 2, 2024/ AGRAHAYANA 11, 1946 (SAKA)

## Reasons for Closure of ATMs

As informed by the Public Sector Banks (PSBs), the reasons of closure of ATMs by the Banks, inter-alia include, amalgamation of banks, low hits, lack of commercial viability, relocation of ATMs etc.

The measures being taken to ensure access to cash and banking services in areas with limited banking infrastructure, along with efforts to encourage digital literacy and facilitate digital transactions are as under:

- i. RBI has granted general permission to domestic Scheduled Commercial Banks (SCBs) [excluding Regional Rural Banks (RRBs)] to open banking outlets including branch at any place in the country, without seeking prior approval of RBI in each case. This is subject to at least 25 percent of the total number of  banking  outlets  being  opened  during  a  financial  year  in  unbanked  rural  centres  i.e. centres having population less than 10,000 (Tier 5 and Tier 6 centres);
- ii. SCBs, RRBs, and Local Area Banks (LABs) have been permitted to use intermediaries to offer financial services through Business Facilitator/Business Correspondent Model to promote financial inclusion. A robust network of 12.62 lakh Business Correspondents has been providing a wide range of banking services to the people across the country;
- iii. Digital Banking Units (DBUs) have been set up to enhance digital banking accessibility, providing a paperless, secure environment for customers while promoting awareness about digital financial services. As on 31.10.2024, a total of 102 DBUs have been set up across the country by banks;
- iv. Over the past nine years, India has witnessed a significant deepening of financial inclusion and a remarkable surge in digital payments, driven by initiatives such as Jan Dhan Yojana, proliferation of UPI (Unified Payments Interface), and widespread adoption of mobile internet. UPI transactions have increased 25 folds in past 5 years i.e. from 535 crore in FY 18-19 to 13,113 crore in FY 2324. Over 8,566 crore UPI transactions for Rs. 122.06 lakh crore have been registered in FY24-25 (till Sept'24).

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