Cash is still the king in India as ATMs withdrawals rise 235% since 2016 demonetization

Despite analysts talk about the relevance and importance of ₹2000 currency note in the Indian economy, cash continues to attract Indians the most as the medium of exchange, suggests a report titled 'CMS India Cash Vibrancy Report 2023' by CMS Info Systems.

According to the report, the ATM cash withdrawals zoomed 235 per cent to Rs 2.84 lakh crore in March 2023 in a matter of 76 months after demonetization.

The findings in the "India Cash Vibrancy Report 2023" released by CMS Info Systems showed that the cash in circulation (CIC) in the Indian economy dipped sharply after demonetisation but has more than doubled since then.

Currency in circulation (CIC) in India has been on a steady rise. After touching 8. 7 percent in 2016, India’s CIC to GDP ratio has averaged close to 12. 4 percent, which is higher than the 10-year average of 11. 8 percent.
“We have seen 10. 1% growth in monthly average cash replenishment at ATMs and a strong 1. 3X increase in average cash collection per point with e-commerce companies in FY23,” said Anush Raghavan, president, cash management services, CMS Info Systems.

Maharashtra, Gujarat, Tamil Nadu, Karnataka, and Uttar Pradesh together accounted for 43. 1% of the total ATM cash replenished by CMS Info Systems across the country.

Incidentally, these are the top 5 states with maximum gross state domestic product (GSDP) in fiscal year 2022, according to CMS Infosystems.