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.
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A recent report has highlighted that the monthly average ATM cash withdrawals in the last year have spiked by 5.51 per cent.
According to the latest CMS Consumption Report, the withdrawals have risen from Rs 1.35 crore in FY23 to Rs 1.43 crore in FY24.
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.
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The figures indicate that people are likely to spend more cash, which could be a sign of increased overall consumption.
The report highlighted that in FY24, average cash withdrawal 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.
Further, the consumption hotspots in ATM withdrawal in India were led by two Northern states: Delhi and Uttar Pradesh; and two Southern states: Tamil Nadu and Karnataka, and one Eastern state: West Bengal.
It said that 49 per cent of the ATMs of public sector banks are located in metropolitan and urban areas while around 51 per cent of the ATMs are located in SURU.
In the case of private sector banks, around 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.
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, the report said.
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.
The report also highlighted that the average spending in the Media & Entertainment sector jumped by a whopping 29.3 per cent in FY24. A robust 16.76 per cent annual growth in the FMCG sector was also registered.
Average spending in Aviation rose 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.
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