The growth reflects higher cash requirements per transaction and strengthening consumption intensity, it stated.
Average cash dispensed in semi-urban and rural (SURU) areas stood higher than the overall average at ₹1.31 crore in CY25, compared with ₹1.18 crore in metros and ₹1.11 crore in urban centres.
According to the report, average ATM withdrawal ticket sizes in CY25 show a clear upward bias. The average ticket size for the year stood at ₹5,835, with monthly values consistently remaining well above ₹5,700.
This momentum remained strong through the festive period, with October (₹5,846) and December (₹5,829) registering some of the highest average withdrawal values. In contrast, a modest softening was observed during the monsoon months of July and August, when ticket sizes dipped to ₹5,713 and ₹5,697, respectively, in line with seasonal moderation in spending.
However, even during this period, ticket sizes remained materially higher than historical averages, underscoring the structural nature of the increase.
The report suggested that excluding food and other informal categories, every ₹100 spent by Indians is anchored in travel, which alone absorbs ₹37, underscoring the dominance of mobility and holidays in household wallets. Insurance was the second-biggest priority in Indian households at ₹25, signaling rising risk awareness and protection-led spending.
The report highlighted that there was a sharp growth in insurance density (premium per capita), moving from $19 in FY20 to $25 in FY24.
“India is witnessing growth in insurance penetration due to multiple factors ranging from enabling regulation and greater private sector participation to improving distribution capabilities. Data for FY25 indicates that smaller cities and towns now contribute about 62.5 per cent of new insurance premiums, showing broadening demand beyond major urban centres, a key driver of consumption growth”, the report said.
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