Drop in ATM cash withdrawals, but value of transaction has increased: FIS
Average transaction value at ATMs has increased despite a drop in the number of cash withdrawals after removal of cash withdrawal limits on 13 March, says FIS MD
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New Delhi: The average transaction size at ATMs has increased despite a drop in the number of cash withdrawals after the removal of withdrawal limits on 13 March, said Ramaswamy Venkatachalam, managing director, India and South Asia, FIS, a US-based banking technology-provider.
“Today, there is no denomination between Rs500 and Rs2,000, which is a fairly large gap. The challenge is to mainly bridge this gap because most of the people who want to withdraw between this range gap have to ultimately withdraw a Rs2,000 note,” he said.
FIS provides banking and ATM services to over 100 banks in the country.
According to data collected by FIS from around 12,000 ATMs across the country, the average transaction size of withdrawals across ATMs increased from Rs2,295 on 1 January to Rs4,360 on 31 March.
“The average withdrawal size at ATMs went up by 300-400% immediately after demonetisation. However, currently the average value is around Rs4,000 which is 20-30% more that the pre-demonetisation figures,” he added.
Prime Minister Narendra Modi on 8 November demonetised Rs1,000 and Rs500 notes as part of his government’s battle against black money, counterfeiting and terror financing. The move led to a severe cash crunch that started easing weeks later as the central bank pumped new high-value banknotes into the system.