Indians Still Pine For Cash, Average Monthly ATM Withdrawals Climb Nearly 6 Per Cent In FY24: Study

The average ATM cash withdrawals in India remained higher on a monthly basis in FY24, as 10 out of 12 months logged withdrawals higher than the monthly average of 7.23 per cent in FY23

In a world increasingly moving towards digitalisation, India’s attraction for cash doesn’t seem to be going anywhere. A recent report titled, ‘CMS Consumption Report 2024: Unfolding India’ by CMS Info Systems, a business services firm, revealed that monthly average ATM cash withdrawals in the country increased by 5.51 per cent in the 2023-24 fiscal year (FY24). 

In comparison to the 2022-23 fiscal year (FY23) with withdrawals at Rs 1.35 crore, the cash withdrawals in FY24 stood at Rs 1.43 crore, the study revealed. The average ATM cash withdrawals in India remained higher on a monthly basis in FY24, as 10 out of 12 months logged withdrawals higher than the monthly average of 7.23 per cent in FY23, reported Business Standard citing the study. 

Consumption Trends

• The trend of withdrawals from ATM revealed that metros saw 10.37 per cent higher average cash withdrawals, while semi-urban and rural (SURU) and semi-metro regions witnessed a jump of 3.94 per cent and 3.73 per cent in average withdrawals respectively.

 

• Amongst the states, Delhi and Uttar Pradesh in North India, Tamil Nadu and Karnataka in South, and West Bengal in East led the consumption in FY24, the study found.

 

• For public sector banks, 51 per cent of the their ATMs were located in SURU, while 49 per cent were spread across metropolitan and urban regions. Meanwhile, for private lenders, a staggering 64 per cent of the ATMs were found in metropolitan, urban areas, and 36 per cent were located in SURU.

 

• In absolute withdrawal per ATM, Karnataka led the race with the highest annual average withdrawal of Rs 1.83 crore during the period under review, while Delhi and West Bengal followed closely at Rs 1.82 crore and Rs 1.62 crore respectively. 

The consumption report by CMS Info Systems tried to analyse trends based on the ‘CMS Cash Index’ (CCI). The index compiles data from a huge network, including every second ATM and every third organised retail outlet serviced by CMS Cash Logistics. The aim of the survey is to understand the cash-based consumption habits of the people. 

Where Do People Like To Spend?

Entertainment - The average spending in the Media and Entertainment sector soared 29.3 per cent in FY24, making entertainment a priority and not a luxury anymore.

FMCG - The Fast Moving Consumer Goods (FMCG) sector saw a major growth in consumption at 16.76 per cent in FY24, indicating a recovery from the decline witnessed in the previous year, the study revealed.

Travel - Travel has now almost become a necessity. Average spending in aviation increased by over 6 per cent and by more than 8 per cent in railways in FY24. Both the segments clocked growth of 27.42 per cent and 56.35 per cent respectively in the last two years, the report found.