Private ATM operators are worried about the reduction in the number of ATMs with the merger of 10 public sector banks announced by the government in August this year.

Data from the Reserve Bank of India show that the 10 banks that will be merged into four entities — they will operate from April next year — have a total of 45,005 ATMs at both onsite and offsite locations as of July 2019. It constitutes around 22 per cent of the total ATMs of 64 banks, including commercial banks (public and private), payment banks and small finance banks.

A major concern is that cost optimisation will be a key consideration among the merging banks. While there could be difficulties in rationalisation of human resources because of pressure from the unions, banks will consider other means, including evaluation of non-core assets of each of the merging entities.

With a thrust from the government towards promoting means of digital payments, ATM rationalisation is anticipated by both bankers as well as private operators. “The recent merger announcements of the state-run banks will have an impact on ATM numbers going forward, as the consolidation plan will surely take into account the multiplicity of ATMs of the merging banks in a location or its vicinity,” said Radha Rama Dorai, managing director — ATM and allied services, FIS.