Fewer ATM visits, bigger withdrawals: How Indians are using cash now

 Cash withdrawals across automated teller machines (ATMs) showed signs of decline in 2025, even as the average amount withdrawn per transaction increased, according to a new report by CMS Info Systems, which manages around 73,000 ATMs across the country.

 

The numbers point to a clear behavioural shift: cash is no longer disappearing—but it is being used more deliberately.

 

On average, each ATM dispensed ₹1.21 crore per month in 2025, lower than ₹1.30 crore in the previous year, indicating a moderation in overall cash usage.

 

At the same time, the average ticket size per withdrawal rose 4.5%, from ₹5,586 in 2024 to ₹5,835 in 2025.

 

 Digital payments are increasingly handling everyday, low-value transactions—groceries, transport, subscriptions—while cash is being reserved for planned or unavoidable

 

"Data for the monthly average cash dispensed per ATM in 2024 was not immediately available. It can be noted that the last year has seen a higher propensity to use digital payments among people, with monthly volumes hitting new highs," said the report. 

 

ATMs in Karnataka had the highest withdrawals at Rs 1.73 crore per machine, while the Union territory of Jammu and Kashmir reported the lowest at Rs 83 lakh, as per the report.

 

The company said the semi-urban and rural areas showed more tendency to withdraw cash from ATMs at Rs 1.30 crore per machine in 2025 against Rs 1.18 crore in metro areas and Rs 1.11 crore in urban pockets.

 

Climate events like monsoon, heatwave and pollution, along with festivals, had an impact on the monthly average ATM cash dispensed, it said, adding that the ease of mobility influences the overall numbers.

 

Digital for Daily Spend, Cash for Control

 

The decline in cash dispensation comes against the backdrop of record-high digital payment volumes over the past year. UPI and card payments have taken over routine spending, reducing the need for frequent ATM visits.

 

What hasn’t changed is the role of cash as a control tool. Larger withdrawals suggest households prefer keeping some physical liquidity on hand—for emergencies, local services, or places where digital payments remain patchy.

 

In short, cash is no longer the default—but it remains a fallback.

 

What the Spending Data Reveals About Priorities

 

Beyond ATM usage, CMS’s consumption data offers insight into how household wallets are changing.

 

In 2025, insurance emerged as the second-largest spending category, accounting for 25% of wallet share, supported by 32% growth following government-led reforms.

 

At the same time, spending declined in:

 

Education (–7%)

Hospitality (–9%)

Media & entertainment (–15%)

 

Where Cash Is Still King

Karnataka recorded the highest withdrawals, at ₹1.73 crore per ATM

• Jammu and Kashmir saw the lowest, at ₹83 lakh per ATM
• More importantly for households, semi-urban and rural areas withdrew more cash than metros:
• Semi-urban & rural: ₹1.30 crore per ATM
• Metro cities: ₹1.18 crore
• Urban (non-metro): ₹1.11 crore