Increase in income level of people is quite evident from the rising amount of withdrawals from automatic teller machines (ATMs). Rising number of ATMs has also been a causative for the rising amount of withdrawals from them. The festival season recently ended has witnessed an average withdrawal of Rs 10,500 from ATMs, which is three times of Rs 3,500 in 2008 and a 75% rise from Rs 6,000 in 2009.

In the last few years, there has been a sudden surge in the number of ATMs in the country thereby leading to a proportionate rise in transactions from them. Also, adding to it has been the reduction in transaction costs by banks.

Rise in cash withdrawal is an indicative of strengthening customer confidence, reduced fear of job cut which had set in during the economic slowdown. Some also suggest that the picture is an indicative of the country growing at 8.5% this fiscal.

"There is tremendous surge in consumption and rise in purchasing power and propensity to spend," said Bank of Baroda Chief Economist & General Manager Rupa Rege-Nitsure "This also shows India's transition from a developing economy to a middle-income nation. The rise has happened in certain income brackets, especially among the middle and higher-middle classes."

C S Jain, the head for personal banking at IDBI Bank however said that the rising number of transactions can be a resultant of rising inflation in the country. Also, a person is allowed only five free transactions from ATMs of other banks which may have led to rise in size of transactions, said Jain.

Maharashtra accounts for the maximum number of successful transactions followed by Delhi, Karnataka & Tamil Nadu, thus inferring that people in Maharashtra and Delhi carry more cash than from any other state in India.