India's leading cash logistics company, CMS Infosystems, revealed a notable 5.51% growth in the monthly average cash withdrawals from ATMs, reaching Rs 1.43 crore in FY24. Despite the increasing popularity of digital payment modes like UPI, which has led to speculation about a decline in cash usage, the report indicates a steady demand for cash across the country.
The report highlights that the average cash withdrawn saw a significant 10.37% increase in metro areas, followed by a 3.94% increase in semi-urban and rural areas (SURU), and a 3.73% increase in semi-metros. This growth underscores the continued reliance on cash transactions in various parts of the country.
According to the report, ATM cash withdrawals in metro locations have surged by 37.49%, while SURU witnessed a growth of 12.50% in ATM cash withdrawals, reflecting the varying cash usage patterns across different regions.
The distribution of ATMs across different areas also varied between state-run and private sector lenders. Approximately 49% of ATMs of state-run lenders are located in metropolitan and urban areas, whereas the figure stands at 64% for private sector lenders. The remaining ATMs are situated in semi-urban and rural areas for both categories of lenders.
Karnataka emerged as the state with the highest absolute withdrawals per ATM, with an annual average withdrawal of Rs 1.83 crore, followed closely by Delhi at Rs 1.82 crore and West Bengal at Rs 1.62 crore, indicating strong cash demand in these regions.
The report, titled 'Unfolding India's Consumption Story,' also sheds light on other sectors. It reveals a 29.30% increase in average spending in the media and entertainment sector in FY24. Additionally, spending on fast-moving consumer goods (FMCG) rose by 16.76% in FY2 ..
Source Name : Economic Times