Cash is still king in North India: Rs 1.3 cr per ATM withdrawn in FY25

Over the past decade, Currency in Circulation (CIC) increased by 157%, the number of ATMs grew by 32%, and the number of bank branches rose by 36%.

In FY25, India’s cash economy experienced a notable surge, with North India emerging as the top region for cash withdrawals. According to CMS Info Systems, the average cash dispensed per ATM in India reached Rs 1.3 crore, reflecting a growing preference for cash transactions in several states. 

 

In FY25, India’s top three states are (in terms of growth in average cash dispensed per ATM): Bihar, New Delhi and Uttar Pradesh. CMS Info Systems’ data shows that North India is not only witnessing higher ATM cash withdrawals but is also positioning itself as a key player in India’s consumption growth story. The surge in cash withdrawals is a reflection of the sustained demand for tangible currency, which plays a crucial role in retail, small-scale business transactions, and daily consumer activities across the country.

 

 

Bihar, Himachal Pradesh, and Chhattisgarh joined the ranks of top-performing regions for cash-led consumption, marking their first-time entry into this growth trend in the last three years. These states, alongside others in North India, are increasingly becoming cash hotspots, noted the report.

 

Overall, the average cash dispensed per ATM has increased from Rs 1.02 Cr in FY17 to Rs 1.30 Cr in FY25.

 

State Picture: 

Top 5 Consumption hotspots in FY25 (YoY growth)

Bihar – 8% 

New Delhi – 4%

Uttar Pradesh – 4%

Himachal Pradesh – 3% 

Chhattisgarh – 2%

 

"Similar to sectoral data, we see a rotation theme playing out in state consumption as well with a shift in the top 5 consumption hotspots across years. The only exception has been New Delhi which has consistently stayed in the top 5 for the past 3 consecutive years," said the  CMS Consumption Report .

 

Growth in monthly average cash dispensed per ATM in FY25: 

 

Even as Indians embrace digital payments, cash continues to rule the roost. Cash remains an integral part of the Indian economy and ATMs remain an important touchpoint that facilitate easy access to cash for India’s large and widespread population. 

 

The increase in the ticket size of ATM withdrawals also evidences this. As per CMS ATM Dispensed data, the average ticket size (ATS) of ATM withdrawals in FY25 was Rs 5,658, registering a y-o-y growth of 3%. Further, select months like October 2024, January 2025, February 2025, and March 2025 witnessed a higher growth in ticket size at 4%, 4%, 5%, and 6% respectively.  

 

In contrast, the ATS of all UPI transactions dropped by 8% from Rs 1,603 in H1 2023 to Rs 1,478 in H1 2024. From a consumption spending perspective, the ATS for person-to-merchant (P2M) transactions declined from Rs 667 to Rs 643 in the same period, representing a 4% reduction.  

The growth in average cash dispensed per ATM in these regions aligns with broader national trends. Between 2014 and 2024, currency in Circulation (CIC) increased by 157%, the number of ATMs grew by 32%, and the number of bank branches rose by 36%. This robust infrastructure has been instrumental in supporting India’s thriving cash-driven consumption economy, noted the report.

 

According to the Reserve Bank of India’s (RBI) October 2024 bulletin, the ratio of currency to demand deposits indicates a growing preference for physical currency over digital payment modes. As of April 2023, the currency-to-demand deposits ratio was above its long-term average of 1.61, having recovered from the demonetization period. This surge in cash demand signifies that, even as digital payments increase, cash still dominates consumer expenditure, accounting for 60% of spending as of March 2024.

 

The continued prominence of cash is indicative of the challenges and opportunities within India’s consumption economy. While the country successfully integrates digital payments alongside physical currency, the preference for cash remains deeply entrenched in consumer behavior, especially in regions like North India.