ATM Withdrawals Decline by 50%: RBI

The Reserve Bank of India (RBI) in a data revealed that cash withdrawals from ATMs declined by around 50 percent in value from the preceding month in April- the first full month of the nationwide lockdown due to the COVID-19 pandemic.

The data revealed that ATM withdrawals fell to Rs 1.28 lakhcrore from Rs. 2.51 lakh crore in March.

In February, a total of Rs. 2.86 lakh crore was withdrawn atATMs.

According to the reports, all other payment system indicatorsalso showed a sharp decline in value in April compared with the precedingmonths.

This indicated the magnitude of the impact that thelockdown had on economic activity.

ATM manufacturers said apart from restrictions onmovement that hit transactions, an inclination to conserve liquidity among bankcustomers also led to the reduction in withdrawals.

The higher drop at white label ATMs was because anumber of them were deployed in rural areas and depended on bank branches inrural centres for providing cash.