Patna: Access to cash is becoming increasingly difficult for people across Bihar as banks have permanently shut 371 automated teller machines (ATMs) across the state within nine months, from March to December 2025. The highest impact has been seen in Patna, where 117 ATMs were closed during the period.
According to data from the State Level Bankers’ Committee (SLBC), the number of operational ATMs in Bihar declined from 7,269 in March 2025 to 6,898 by December 2025. Banking officials expect the figure to fall further when the June 2026 quarterly report is released.
The reduction in ATMs comes even as banks expanded their branch network. Bihar had 8,365 bank branches as of March 31, 2025, and the number increased by 55 to 8,420 by December 2025. However, banks have been rapidly reducing their network of off-site ATMs located outside branch premises.
The shrinking ATM network has directly affected urban and semi-urban residents, small traders, and daily wage earners who continue to depend on cash for routine transactions and often have to travel longer distances to withdraw money during emergencies.
Public Sector Banks Lead ATM Closures
Both public and private sector banks have participated in the downsizing exercise. Public sector banks accounted for the closure of 220 ATMs, while private banks shut 125 ATMs, mainly in urban markets and residential areas.
Banking experts attribute the move to the rapid rise in Unified Payments Interface (UPI) transactions. According to banks, several off-site ATM kiosks were witnessing fewer than 170 users per day, making them financially unviable due to expenses such as rent, security personnel, electricity, and cash replenishment.
Patna, Muzaffarpur and Vaishali Among Worst Affected
Patna recorded the highest number of ATM closures with 117 kiosks shutting down. Muzaffarpur lost 27 ATMs, while 20 ATMs were closed in Vaishali.
The closures have particularly affected vegetable markets, grocery stores, and workers in the informal sector, where cash payments ranging from Rs 100 to Rs 500 and the availability of change remain essential for daily transactions.
In contrast to the statewide trend, Gaya district added five new ATMs during the same period.
Experts Cite UPI Adoption
Banking expert Rajiv Narayan Das said the surge in UPI transactions has significantly reduced the frequency of cash withdrawals from ATMs.
“Banks are shutting down off-site ATMs that receive fewer than 170 visitors a day. The objective is to balance operational costs by reducing expenditure on low-footfall locations,” he said.
Government to Review ATM Data
Mihir Kumar Singh, Development Commissioner and Convenor of the State Government’s Banking Monitoring Committee, said he was not aware of the latest figures.
“You have brought this matter to my notice. I do not have the related data at present. I will have the ATM figures reviewed in the next meeting,” Singh said.
The decline in Bihar’s ATM network reflects the banking sector’s growing shift towards digital payments. However, the closures are also highlighting the continued dependence on cash among many consumers, particularly in markets and sectors where digital transactions have yet to become universal.
