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India Cash Vibrancy Report 2023

The CMS India Cash Vibrancy Report 2023 highlights the importance of cash usage among consumers basis FY23 megatrends and demonstrates its robust co-existence with digital payments in the country.

The report is underpinned by our CMS Cash Index™ which was launched in 2016 to track the infusion of cash back into the economy across various commerce points.

The Global Picture

CIC/GDP ratio of leading economies accentuates the steady demand for cash (Data as on 2021)

Source: BIS CPMI Red Book statistics

The National Picture

Note: The S&P Global India Composite PMI readings are rebased to 100 in April 2016, when CMS Cash IndexTM was launched, to derive the correlation between the two indices.

Source: CMS Info Systems, S&P Global

CMS Cash Index™ and S&P Global India Composite PMI show a strong correlation

The relative performance of the CMS Cash Index™ (CCI) weighted index constructed based on cash that goes into circulation via the ATM channels and the cash collected from retail channel points, both covered by CMS Info Systems ‐ versus the S&P Global India Composite PMI (S&PGIPMI) ‐ that gauges the expansion and contraction in economic activity.

The S&PGIPMI demonstrates a strong correlation and establishes CMS Cash Index as a key barometer for tracking the cash vibrancy in India. In November-December 2016, after demonetisation, there was a sharp fall in CCI while S&PGIPMI saw much lesser decline. Subsequently, the CCI saw a spell of relative underperformance until cash supply stabilised. At the peak of the COVID-19 pandemic and the lockdown, the fall in S&PGIPMI was much starker compared to the decline seen in the CCI.

Source: CMS Info Systems

Average cash replenishment per ATM (Rs Cr)

10.08% annual growth in monthly average cash replenishment per ATM by CMS Info Systems in FY 2023.

The average value of cash replenishment per ATM during FY 2023 was Rs.1.35 crore; 10.08% higher than the average cash replenishment per ATM of Rs.1.23 crore during FY 2022. The monthly look at the average ATM replenishments reveals the tinge of the second wave of the COVID-19 pandemic.

During FY 2023, the first quarter saw monthly changes in replenishment per ATM higher by an average 24.92% compared to April–June 2021. In comparison to May 2021, when replenishments dipped to average Rs.0.97 crore per ATM, the average replenishment of Rs.1.33 crore per ATM during May 2022 was an absolute growth of 37.69%.

The States' Picture

Barring Jammu & Kashmir, all states witnessed growth in ATM cash replenishments during FY 2023

  • In FY 2023, ATMs in the state of Karnataka saw the highest average cash replenishment per ATM at Rs.1.73 crore, which was 18.14% higher than the average Rs.1.46 crore cash replenished per ATM during FY 2022
  • When seen from the lens of the highest annual growth in average ATM cash replenishment per ATM, Delhi, Karnataka, Tamil Nadu, Kerala and Maharashtra saw a respective annual growth of 23.78%, 18.14%, 15.77%, 14.67% and 13.69% during FY 2023
  • According to the Ministry of Statistics and Programme Implementation (MoSPI) Maharashtra, Gujarat, Tamil Nadu, Karnataka, and Uttar Pradesh are the Top 5 states with maximum GSDP in FY 2022. Together these states accounted for 43.10% of the ATM cash replenished by CMS Info Systems during FY 2023.

Average Cash Replenishment Per ATM (₹ Cr)

Source: CMS Info Systems

The Demographic Picture

ATM Cash replenishments in metropolitan cities have seen higher growth, followed by SURU

Source: CMS Info Systems

Average ATM Cash replenishments

Given the lower penetration of financial and digital literacy in SURU locations, there was a relatively higher dependence on cash. During the second wave of COVID-19 pandemic in April-July 2021, SURU ATMs saw 15.47% growth in average cash replenishment per ATM compared to metro and semi-metro locations.

The Sectoral Picture

Cash collection from organised retail points captures the pulse of the economy


growth in cash collected in FY23

Organised Retail

growth in cash collected in FY23

Banking & Financial Services

growth in cash collected in FY 23

India Cash Vibrancy Report 2023

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