The primary indicator is the low efficiency of recycling cash in India. Also, the reports say India ranks lowest in making use of ATM for cash withdrawal. RBI recent data revealed, the diving record of the total number of ATM in India reached to around 2,21,703 as on March 31, 2019. In the year 2017, it was approx. 2,22,300.

Nearly 596 ATM was shut down in a year or two.

However, India has come with a strong growth rate of around 14% ( 2012- 2017.)
I find this may be a sign that account holders are forwarding their steps towards digital payments and transaction.
Due to digital encouragement and transformation through new installments of online platforms, users are more into online banking. Rest, another data also comes out with the reason of heavy charges born by the bank for maintenance of ATM machines and security.

Moreover, It's for sure that ATM's are further going to reduce as it will save Bank cost & people will prefer to do more online transactions