ATM: These states top the list for cash demand; a new record set for ATM withdrawals..

Even though UPI and digital payments are growing rapidly in India, the importance of cash has not diminished. Recent data clearly show that people in many states continue to withdraw large amounts of cash from ATMs. In particular, there are states where the demand for cash is steadily rising, placing them at the forefront of ATM withdrawals.

According to reports, Karnataka, Tamil Nadu, West Bengal, Chhattisgarh, and Odisha are among the states with the highest ATM cash withdrawals. Karnataka tops this list; the average annual withdrawal per ATM there has reached approximately ₹1.8 crore, the highest in the country.

Focusing on Karnataka, the state leads the list, with an average of ₹1.73 crore withdrawn per ATM each month. Key factors driving this include business activities, the large population of salaried professionals, and daily expenses in major cities like Bengaluru.

West Bengal ranks second in this regard, with an average monthly withdrawal of ₹1.65 crore per ATM. Cash usage remains very common across the state for markets, small businesses, and retail shopping.

In Tamil Nadu, the average monthly withdrawal per ATM stands at ₹1.62 crore. It is worth noting that the state is among the top regions in the country for cash usage.

Chhattisgarh and Odisha
Additionally, the average withdrawal per ATM was ₹1.52 crore in Chhattisgarh and ₹1.51 crore in Odisha. Both states demonstrated strong demand for cash.

Interestingly, cash usage has not declined despite the massive surge in digital transactions. An SBI Research report also indicates that the trend of ATM withdrawals remains robust, showing consistent growth—particularly in states like Karnataka, Tamil Nadu, and West Bengal. Several reasons are attributed to this. Cash transactions remain prevalent among small traders and in local markets. Furthermore, due to the lack of robust digital infrastructure in rural and semi-urban areas, people continue to rely heavily on cash.

Experts believe that cash plays a crucial role in festivals, weddings, and daily expenses. This is why, even in the era of "Digital India," the habit of withdrawing cash from ATMs persists. Another significant trend is the year-on-year increase in ATM withdrawals across more than 14 states, indicating that cash usage is not merely stable but actually rising.

Overall, the picture is clear: while India is rapidly digitizing, cash remains an integral part of people's lives. The high volume of ATM withdrawals, particularly in these top five states, signals that the journey toward a "cashless economy" still has a long way to go.

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