Estimation – Number of ATMs in India

Population Split –

Therefore, the population split approximately comes to,

Rural = 900 Million

Urban = 400 Million


Household Split –

Next, we will calculate the number of Households in India,

Assuming, there are 4 people in a household for both urban and rural,

(Ideally, we would assume, 3 for Urban and 5 for Rural)

Household split come to,

Rural = (900 Million / 4) = 230 Million

Urban = (400 Million / 4) = 100 Million


Total number of ATM cardholders in India –

Next, let’s estimate the total number of ATM cardholders in India,

Assuming,

  • 70% of Rural household has ATM cards and,
  • 90% of Urban Households has ATM cards

This comes down to, (70% of 230 Million)

= 160 Million ATM cards in Rural and (90% of 100 Million)

= 90 Million ATM cards in Urban.


Now, let’s assume –

In Urban, let say 10% of household has 2 ATMs and rest of the 90% has 1 ATM,

= (10% * 90M)*2 + (90% * 90M)*1= 18 + 81 M = ~ 100M ATM users

In Rural, let say 10% of household has 1 ATMs,

= (100% * 160M)*1 = 160 M ATM users


Now Assuming,

1 ATM is mapped to ~500 users in the Urban area, & ~2000 users in Rural area

Total number of ATMs in Urban + Rural India =

= 100M/500 + 160M/2000

= 2,00,000 + 80,000

= 2,80,000 ATMs are there in India.

The actual number of ATMs in India is around ~2,40,000

Toufiq Mahmud