INVC NEWS
Mumbai : Karnataka leads the country in terms of cash withdrawal from ATMs, followed by Delhi with Rs 1.82 crore and West Bengal with Rs 1.62 crore. in the realm of financial transactions, cash remains a cornerstone despite the advent of digital payment solutions. Karnataka emerges as a frontrunner in this narrative, spearheading the nation in cash withdrawals from Automated Teller Machines (ATMs).
This article delves into the intricacies of this phenomenon, offering a comprehensive analysis of the trends, factors, and implications surrounding cash withdrawals in India.
The report titled ‘Unfolding India’s Consumption Story’ said average spending in the media and entertainment sector grew by 29.30 per cent in FY2024 after a decline of 21.94 per cent in FY23. Expenditure on consumer goods increased by 16.76 percent. Many steps are being taken by the Government along with the Reserve Bank of India to promote digital payments. Despite this, there is a rise in the demand for cash in the country.
CMS Infosystems has released a report regarding cash withdrawal. Let us tell you that CMS Infosystems is India’s leading cash logistics company.
The company said in its annual report that in the last financial year 2023-24, there has been an average increase of 5.51 percent (about Rs 1.43 crore) in cash withdrawals from an ATM every month. This means that many people still prefer to transact with cash.
Increase in cash withdrawal
According to the report, there has been a rise in digital payment modes like UPI. In such a situation, the use of cash may have declined. The company said in its report that in the financial year 2013, cash withdrawal of about Rs 1.35 crore was done every month from Automated Teller Machine (ATM).
The average cash withdrawal in the country’s metros increased by 10.37 percent. This was followed by an increase of 3.94 per cent in SURUs (semi-urban and rural) and 3.73 per cent in semi-metropolitan areas.
