 "atm transactions")
This report has been updated
Despite the rise of Unified Payments Interface (UPI) payments in India, there was a 5.51 per cent increase in average monthly cash withdrawals at automated teller machines (ATMs) in the past year, according to the latest CMS Consumption Report. The rate of increase, however, was lower than the country's economic growth rate of 9 per cent in nominal terms, implying the usage of cash came down during the financial year.
Withdrawals rose from Rs 1.35 crore in FY23 to Rs 1.43 crore in FY24, the report said. In 10 of the 12 months of FY24, the rate of increase in average monthly ATM cash withdrawals over the previous year was higher than the FY23 monthly average of 7.23 per cent.
Despite the rise of Unified Payments Interface (UPI) payments in India, there was a 5.51 per cent increase in average monthly cash withdrawals at automated teller machines (ATMs) in the past year, according to the latest CMS Consumption Report. The rate of increase, however, was lower than the country's economic growth rate of 9 per cent in nominal terms, implying the usage of cash came down during the financial year.
Withdrawals rose from Rs 1.35 crore in FY23 to Rs 1.43 crore in FY24, the report said. In 10 of the 12 months of FY24, the rate of increase in average monthly ATM cash withdrawals over the previous year was higher than the FY23 monthly average of 7.23 per cent.
Average Cash Replenishment per ATM - Month-wise (Rs cr)
ATM withdrawal trends by CMS indicate that in FY24, average cash withdrawn increased by 10.37 per cent in the metros, followed by a 3.94 per cent increase in semi-urban and rural (SURU), and a 3.73 per cent increase in semi-metros.
During FY24, consumption hotspots in ATM withdrawal in India were led by two Northern states – Delhi and Uttar Pradesh; 2 Southern states – Tamil Nadu and Karnataka, and 1 Eastern state – West Bengal.
Top 5 consumption hotspots in ATM withdrawal
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In the case of public sector banks, 49 per cent of the ATMs are located in metropolitan and urban areas while ~51per cent of the ATMs are located in SURU. Correspondingly, in the case of private sector banks, ~64 per cent of the ATMs are located in metropolitan and urban areas while 36 per cent 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 per cent YoY growth in the annual average ATM withdrawal, and 9 States and Union Territories saw an average 4.14 per cent YoY decline.
In FY24, 14 out of 23 States & Union Territories witnessed 6.45 per cent YoY growth in the annual average ATM withdrawal, and 9 States and Union Territories saw an average 4.14 per cent 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.
Key takeaways:
Entertainment takes centre stage: Gone are the days when entertainment was considered a luxury. According to the report, average spending in the Media & Entertainment sector jumped by a whopping 29.3 per cent in FY24. This growth builds upon a significant two-year increase of nearly 100 per cent.
Beyond essentials: Indian consumers are moving beyond just basic necessities like food, clothing, and shelter. The report highlights a robust 16.76 per cent annual growth in the FMCG sector (Fast-Moving Consumer Goods) in FY24, signifying a remarkable recovery from a decline observed in the previous year.
Travel boom: The travel industry is flourishing, with average spending in Aviation rising by 6.36 per cent and Railway travel by 8.16 per cent in FY24. Over the past two years, these sectors have witnessed impressive growth of 27.42 per cent and 56.35 per cent, respectively.
Shifting sands in digital space: The report also notes an interesting shift in spending habits related to e-commerce and education. While these sectors previously witnessed declines, the rate of decrease has slowed significantly in FY24.
Metros lead the way: Big cities continue to dominate consumption spending, with a 10.37 per cent increase in average ATM withdrawals for spending in metros. This trend is complemented by a rise in spending in semi-metros and Tier-2 locations.
Consumption hotspots: The report identifies key consumption hotspots based on ATM withdrawals. The top states include Delhi and Uttar Pradesh in the North, Tamil Nadu and Karnataka in the South, and West Bengal in the East.
