Nowadays everyone has switched to digital payment, apps like UPI and PhonePe have made life easier, but do you know what effect this change is having on banks? Especially on ATMs? Imagine, earning Rs 2043 crore in five years! This is no small thing. SBI has earned this from its ATMs. This has come to light from the data presented in the Parliament. The interesting thing is that even in the era of UPI and other digital payment apps, SBI is making so much profit. The reason for this is SBI’s large ATM network spread across the country. Where other banks have a few ATMs, SBI’s network is very large. But, the story is not the same with other government banks. Bank of Baroda, Union Bank, Indian Bank, and Central Bank of India are incurring losses from ATMs. Why? Because they do not have a network as big as SBI and the cost of running ATMs is more than their income. PNB has made a little profit, but that too is very small compared to SBI’s profit.
UPI’s effect and SBI’s strategy – It is true that ATM transactions have reduced with the advent of UPI. People are now making more digital payments. But SBI has faced this challenge with the help of its huge network. Their large network is their strength, due to which they are earning so much profit. It is becoming difficult for other small banks to run ATMs.It is clear that this is the era of digital payments. Small banks will have to change their strategy. Maybe they will have to reduce the number of ATMs or change their ways of running ATMs. Otherwise, the losses from ATMs will keep increasing.
