With UPI growing, is investing in ATMs safe? Data shows cash usage is actually increasing in rural India.
A common fear is: "With UPI apps like PhonePe, will anyone use ATMs in 2026?" The data suggests the opposite.
The Cash Paradox
While digital payments have surged, Currency in Circulation (CIC) is at an all-time high. Why? Because people spend digitally but save and transact in cash for high-value or rural purchases.
The Rural Safety Net
In rural India (Tier-3 and villages), internet connectivity is often unreliable. UPI transactions fail. Cash never fails. An ATM in a village is a necessity, not a luxury. This ensures the business remains profitable for the next decade.
Smart ATMs
The industry is moving towards Cash Recyclers (CRMs), which allow both deposit and withdrawal. This increases the utility of your franchise beyond just dispensing cash.
