STRATEGIC PARTNERS
May 17, 2019
Despite a continuing demand for cash among Indian consumers, the number of ATMs in India has declined over the past two years — and could continue to do so in the future, despite the addition of 355 million cash-using Indians to the formal banking system.
According to a report by Business Today citing statistics from the Reserve Bank of India, ATM transactions actually have increased since the government of Narendra Modi demonetized 86% of the country's banknotes nearly three years ago in an effort to push digital payments.
However, tighter government-imposed regulations and strict fee caps are making it increasingly difficult to operate ATMs at a profit — particularly for smaller deployers, the report said.
Prime Minister Modi's emphasis on digital payment does seem to have had some effect. According to the report, the number of mobile banking transactions has grown by 6,500% in the past five years.
