The bank faced widespread criticism after it announced the move earlier this week.
AIB has scrapped its plans to make 70 branches cashless.
Birr, Edenderry and Rathdowney were among the branches set for the change this September, with customers able to lodge and withdraw cash at post offices instead.
In a statement, the bank says it recognises 'the customer and public unease that this has caused'.
It says it will retain its 170-branch network in its entirety
Offaly's Seamus Boland, of Irish Rural Link, welcomes the news but warns it could happen again soon:
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