Change Needed For India’s ATMs

Relative to its population, India has few ATMs – 22 per 100,000 people, according to the World Bank, compared with 81 in China. It also has one of the lowest ratios of ATM cash withdrawals relative to cash in circulation, according to a June 2019 RBI report, 'Benchmarking India's Payment Systems'.

Growth in the number of ATMs has been strong in recent years, but by September 2020 stalled at 234,244. It appears that economic recession, the COVID-19 pandemic and urban digitisation lie behind this.

Early on in the pandemic there was a largescale movement of people returning to their villages when employment opportunities were curtailed in the cities. As a result, cash organisations have struggled to get staff to replenish their ATMs. In addition, the government has sought to make welfare payments directly to bank accounts.