Indian banks opt for fewer onsite ATMs
07 May 2018
The growing popularity of online payment services and transactions has led to a sharp fall in the use of ATMs, resulting in many banks shutting down these machines.
According to the Reserve Bank of India (RBI), nearly 2,500 onsite ATMs were closed between May 2017 and February 2018 by banks across the country. The numbers fell from 110,116 ATMs to 107,630.
State Bank of India (SBI), the country’s largest commercial bank, reduced its ATMs from 29,150 to 26,505. However, the number of offsite ATMs by the bank rose from 29,917 to 32,680.
The cost of setting up and maintaining ATMs has also come down sharply, according to bankers. While an average ATM would cost about Rs500,000 in the past, today prices have fallen by nearly 90 per cent.
The space occupied by ATMs has also dipped significantly – from 100 sq ft in the past to less than 50 sq ft. Many banks are also planning to cut down costs further by reducing guards and setting up e-surveillance systems.