Rama Krishna Sangem
People are back to cash. Though online UPI payments are on rise in India, there has been a 5.51 per cent increase in the monthly average ATM cash withdrawals in the last year. Withdrawals have risen from Rs 1.35 crore in FY23 to Rs 1.43 crore in FY24, according to the latest CMS Consumption Report. This implies that people are likely spending more cash, which could be a sign of increased overall consumption.
On a monthly basis, the average ATM cash withdrawals in FY24 were higher compared to FY23 with withdrawals in 10 out of 12 months exceeding the FY23 monthly average of 7.23 per cent.
Despite the rise of UPI payments in India, there has been a 5.51 per cent increase in the monthly average ATM cash withdrawals in the last year. Withdrawals have risen from Rs 1.35 crore in FY23 to Rs 1.43 crore in FY24, according to the latest CMS Consumption Report. This implies that people are likely spending more cash, which could be a sign of increased overall consumption.
Cash withdraws up by 7 per cent
On a monthly basis, the average ATM cash withdrawals in FY24 were higher compared to FY23 with withdrawals in 10 out of 12 months exceeding the FY23 monthly average of 7.23 per cent.
In the case of public sector banks, 49 per cent of the ATMs are located in metropolitan and urban areas while ~51% of the ATMs are located in SURU. Correspondingly, in the case of private sector banks, ~64% of the ATMs are located in metropolitan and urban areas while 36% of the ATMs are located in SURU to enable consumption spending.
In terms of absolute withdrawals per ATM, Karnataka saw the highest annual average withdrawal of Rs 1.83 crore during FY24, followed by Delhi and West Bengal at Rs 1.82 crore and Rs 1.62 crore, respectively.
In FY24, 14 out of 23 States & Union Territories witnessed 6.45% YoY growth in the annual average ATM withdrawal, and 9 States and Union Territories saw an average 4.14% YoY decline.
CMS Info Systems (CMS), a leading business services company, released its “CMS Consumption Report 2024: Unfolding India’s Consumption Story.” This second edition of the annual report analyzes trends based on the proprietary “CMS Cash Index” (CCI). This index gathers data from a massive network, encompassing every second ATM and every third organized retail outlet serviced by CMS Cash Logistics, providing valuable insights into cash-based spending habits.
Reasons for people preferring cash in hand are many. One main reason is vendors still prefer payments in cash and non availability of UPI facilities in some areas.
