Digital Payments Drive ATM Decline in FY25, RBI Report Reveals

• ATM count declined to 2,51,057 in FY25 from 2,53,417, primarily due to the rise of digital payments, as per an RBI report.
• Both private and public sector banks reduced their ATM networks, with private banks seeing a larger shrink, while independently operated white label ATMs increased.
• Despite ATM reduction, physical bank branches expanded by 2.8% to 1.64 lakh, with public sector banks leading new branch openings, especially in rural and semi-urban areas.
• Basic savings bank deposit accounts grew 2.6% to 72.4 crore, with aggregate balances rising 9.5% to Rs 3.3 lakh crore, largely via the business correspondent model.
• Deposit insurance covered 97.6% of accounts by end-FY25, though the insured deposit coverage ratio decreased to 41.5% from 43.1%.

Why It Matters: Digital payment surge leads to ATM decline, yet bank branches expand, reflecting evolving banking landscape.