The rise of UPI and mobile banking apps has reduced reliance on cash, causing ATM withdrawals to decline. Maintaining ATMs is costly and banks are cutting back on numbers to optimize resources. Digital banking enables instant payments, fund transfers, and bill payments. This eliminates the many traditional ATM functions. As India pushes for a cashless economy, this shift is a natural progression in urban and semi-urban areas.
Moreover, tech-savvy younger generations increasingly prefer digital payments over cash transactions, reducing ATM footfall. Banks are investing more in upgrading digital infrastructure rather than expanding ATM networks. The move also aligns with government initiatives such as Digital India. While the transition benefits urban users, it does create challenges for those without access to smartphones or Internet connectivity.
