- India's cash in circulation has nearly tripled from Rs 13 lakh crore in FY17 to Rs 41 lakh crore in FY26
- ATM numbers have declined from over 2.19 lakh in FY23 to about 2.09 lakh in FY26 despite more cash
- Debit card ATM withdrawals fell from 685 crore transactions in FY23 to 534 crore in FY26
India is holding more cash than ever before, but ATMs near you are running dry. RBI data shows that cash in circulation has nearly tripled in a decade, rising from about Rs 13 lakh crore in FY17 to over Rs 41 lakh crore in FY26. In volume terms too, banknotes have jumped from 10 thousand crore pieces to over 17 thousand crore pieces in the same period.
Yet, despite this surge in cash, India's ATM network is shrinking. After peaking at over 2.19 lakh machines in FY23, the number of ATMs has steadily declined to about 2.09 lakh in FY26.
In the same duration, cash withdrawals have also fallen. Debit card withdrawals at ATMs dropped from 685 crore transactions in FY23 to 534 crore in FY26. In value terms, debit card withdrawals from ATMs have declined from Rs 32.6 lakh crore to Rs 28.6 lakh crore.
This trend points to a structural shift, i.e., more cash exists in the system, but less is being accessed through ATMs.
Against this backdrop, the Confederation of ATM Industry (CATMi) has warned of growing stress in the system. In a recent communication to the Indian Banks' Association (IBA), the industry body has flagged significant cash supply gaps, saying ATMs are receiving barely 55-65 per cent of the required cash. This raises the risk of frequent cash-outs, especially in rural and semi-urban areas, where dependence on ATMs remains high. But the problem is not just about cash availability but about rising operational challenges.
Deepak Kumar, Senior Manager at Punjab & Sind Bank, points to multiple pressure points. "Hiring round-the-clock security is expensive, and there are no clear guidelines. RBI-mandated e-surveillance systems add to costs. Even outsourcing ATM maintenance has become difficult. Recently, a major service provider went into liquidation, disrupting operations of thousands of ATMs," he said.
The economics of running ATMs are worsening. With reduction of cash usage due to digital payments and high compliance and logistics costs, banks and operators are finding it harder to sustain large ATM networks. Consequently, cash users in far-flung areas may bear the brunt of shrinking ATM infrastructure and may have to wait longer to fulfil their cash needs.
