A senior SBI official explained that digital transactions offer higher transaction limits than ATMs, making them a more preferred choice
Hyderabad: In an era dominated by QR code payments, the once-bustling Automated Teller Machines, popularly known as ATMs, are now slowly becoming a thing of the past. With more people opting for cashless payments through UPI and other online platforms, the demand for cash withdrawals has reduced considerably, hinting at a rapid shift towards a cashless practice.
According to Reserve Bank of India (RBI) data, the total number of ATMs, cash recycler machines (CRMs) and white label ATMs (WLAs) deployed by public sector banks in Telangana has slightly dropped. In 2024, there were 19,867 such machines deployed in the state, compared to 21,319 in 2022, and 20,945 ATMs alone in 2021.
A senior SBI official explained that digital transactions offer higher transaction limits than ATMs, making them a more preferred choice. “ATM withdrawals are typically limited to Rs 20,000- Rs 50,000 per day, while platinum account holders can withdraw up to Rs 1 lakh. However, through UPI, people can transfer up to Rs 1 lakh daily, and through net banking, they can send up to Rs 10 lakh,” said the official.
This apart, the UPI payments made through mobile phones is the most convenient form across the world.
The rise in digital payments is evident from RBI data, which shows that the number of QR codes in India increased from 25.01 crore in February 2023 to 64.97 crore by February 2025. This rapid adoption has reduced people’s dependence on cash and encouraged businesses and vendors to transition to cashless transactions.
“Many banks have cut down their ATMs due to the impact of UPI payments,” said Mengam Srinivas Rao, a former general manager at a cash management company. “After Covid-19, the upgrade in technology has also shifted people to digital payments, causing a loss of human touch in financial transactions.”
Many people now prefer mobile transactions due to its convenience. “If there’s no cash in an ATM, we have to go to another one. To avoid this, it’s easier to use mobile transactions and moreover UPI is handy as you can make payments from anywhere,” said N. Raghavendra, a resident of Vanasthalipuram. Another resident of Hayathnagar, Vijayalakshmi said, “Earlier, we struggled with vendors and ride-hailing apps, who wouldn’t provide small change, but UPI payments have made it easy to pay in exact amounts.”
However, those unfamiliar with digital transactions face difficulties. “I don’t know how to use UPI, and when I try to withdraw cash from an ATM, it’s often out of service or there is no cash in the machine. I rely on my children for digital payments,” said S. Manjula, a homemaker.
Lower footfall at ATMs also led to decrease in security and maintenance. “Previously, banks deployed security personnel at ATMs and maintained them well. But now, many ATMs lack security, and some have been shut down entirely,” said N. Sravya, a government employee.
On the issue of ATM security and maintenance, Srinivas Rao said, “ATMs are not well maintained like before. Banks are cutting costs by reducing the number of security personnel at ATMs.”
Despite the decrease in ATM usage, cash recycling machines (CRMs) continue to be used for both depositing and withdrawing cash — mostly by business people. Officials claim CRMs are popular as it allows people to both deposit and withdraw cash.
