ATM Withdrawals Drop to 2.87M as UPI Transactions Skyrocket to 31M
it will grow with time, and in many places, the ATM has no usage, so it needs to have a monitoring system
Total Views |
ATM withdrawals dropped to ₹28.70 Lakh as UPI Transactions skyrocketed to ₹3.1 Crore. The ATM was a technological development, but had many problems initially, such as time consumption, technical issues, and cash shortages; sometimes they would not work, so people had to search for another ATM. To withdraw a small amount, people had to wait for more than half an hour in line. If they did not get the money in an emergency, they had to ask for money. Digital payment became an alternative there. As a result, India has seen a massive transformation over the last decade in the payment world. In 2026, everyone will have access to digital payments. A decade ago, when UPI was launched, people didn’t think India would process 66 crore transactions every single day, using UPI alone.
_202606121719039763_H@@IGHT_400_W@@IDTH_600.jpg "ATM Withdrawals Drop to 2.87M as UPI Transactions Skyrocket to 31M")
_202606121721223517_H@@IGHT_400_W@@IDTH_600.jpg "ATM Withdrawals Drop to 2.87M as UPI Transactions Skyrocket to 31M")
_202606121746162467_H@@IGHT_400_W@@IDTH_600.jpg "ATM Withdrawals Drop to 2.87M as UPI Transactions Skyrocket to 31M")
From 2020 to 2026, the use of digital payments has increased from ₹40 lakh to ₹314 lakh crore annually. UPI users are not only technologically aware people but also people from lower socio-economic backgrounds and less familiar with technology; they access digital payments most easily. Local shopkeepers prefer digital payments without hesitation about technical issues. Using cash has become an option for most people. Over 500 million people use digital payment apps. Due to the rise in digital payments in India, people have stopped carrying cash. The income received through digital payments is spent in the same way. Cash becomes a burden for many people, who don’t want to carry an extra bag; people have a fear of losing money while travelling.
ALSO READ: What Is Left For Left?
Non-Resident Indians, when they visit India, cannot make payments by card or in cash. The local market didn’t accept cards, and they also don’t have cash change. But there is a solution for this situation. NRIs can now link their NRE/NRO accounts directly to their international mobile number from 12 supported countries to smoothly use UPI apps. NRIs were surprised to see the advancement of technological development in India. The data says that the use of digital payments has increased, and people have become aware that the usage of cash has decreased in the market. RBI data shows India has grown in digital payments: in the financial year 2020-21, it was ₹40 lakhs, doubled the next year, and the number hasn’t stopped there. It went beyond - up to ₹3.1 crore in the financial year 2025-26. On the other hand, cash flow in the market was increasing until people became aware of digital payments and their uses; after that, cash withdrawals decreased each year. In 2018, cash withdrawals were ₹8.18 lakh. In 2019, it increased up to ₹34.20 lakh, the highest of all time. In FY 2019-20, the country faced the COVID-19 pandemic, which stopped the whole nation for a year. After that, things started working again; people got an idea about digital payments and started learning about technological growth. The cash flow increased from ₹28.90 lakh to ₹31.10 lakh and then to ₹33.10 lakh in 2022 and 2023, respectively. In 2023, UPI payment growth was up to ₹1.40 crore. Cash withdrawal values decreased from ₹33.10 lakh to ₹32.70 lakh and then ₹30.80 lakh in 2026. It decreased to ₹ 28.70 lakh. The UPI transactions increased to ₹3.10 crore in FY 2025-26. This data shows that people lost interest in cash transactions because they got easy access to digital payments.
In the last decade, more than 700 banks have provided net banking services. In 2017, 44 banks provided net banking, and ₹2,425 worth of transactions happened. Net banking is not just for making transactions easy, but it also helps small trading businesses run faster and grow efficiently. The emergency fund is accessible in times of crisis. Due to digital payments, many online services have been boosted the most.
The study from IJPREMS explains that 82% of small businesses report revenue growth at the same time, and customer satisfaction after adopting digital payment systems increased. The report noted a 46.7% increase in annual revenue after accepting digital payments. In the era of digital payments, customers' consumption rises because of the smooth transactions compared to cash payments. The digital payment system monitors the history of payments, so sellers and buyers can keep records.
Before digital payments, people had to take cash from an ATM; otherwise, they needed to take it from a bank, but now most people haven’t visited the ATM for so long. Even the new generation, who have access to digital payments as a primary method; they don’t have experience visiting the ATM in cities. The ATM costs more than ₹3.5 to ₹5 lakh to maintain a machine yearly. The maintenance cost includes physical rent, security, cash management, electricity and hardware maintenance. India currently has a great network of the ATM over 2.5 lakh machines across the nation. The major players in the market are State Bank of India, HDFC Bank, Axis Bank, and ICICI Bank. Public sector banks have nearly 63% of the total network, and private sector banks hold 35%. The small bank has access to the total market. The ATM is still useful for people who want to withdraw ₹28.70 lakh in the financial year 2025-26. The ATM has been decreasing since 2023, and digital payments have increased due to technology growth; it will grow with time, and in many places, the ATM has no usage, so it needs to have a monitoring system. India is growing with technological advancement, and the standard of living is increasing with technology.