In rural areas, where digital infrastructure is weaker, fewer ATMs could restrict access to essential cash. Many rural citizens, particularly small traders and daily wage earners, depend on cash transactions. Without ATMs, they may have to travel long distances to access cash, increasing their financial burden. Banks and policymakers must ensure rural regions have alternate methods like mobile ATMs or increased banking correspondents to bridge the gap.
This reduction in ATMs could also delay rural adoption of digital payments, as cash remains the backbone of their economy. Many rural areas still lack reliable electricity and internet access, limiting the effectiveness of digital payment systems. To mitigate these challenges, banks must focus on financial education and introduce hybrid solutions, blending cash access with digital literacy programs to encourage a gradual shift.
