Personal cash withdrawals reach record high in Russia

A record 33.3 tln rubles in personal cash withdrawals were recorded in Russia in 2023, reaching a ten years’ high. Conversely, the increase in money transfers slowed down significantly last year, according to the bank card usage statistics published by the Bank of Russia.

Ramil Sitdikov / RIA Novosti

In 2023, individuals withdrew 33.3 tln rubles ($363.6 bln) from their debit and credit cards. The amount represents a record 13% annual rise from 2022. For comparison, personal cash withdrawals grew by 6% in 2022 and by 5% in 2021. In 2020, they fell by 2%.

At the same time, card-to-card transfers grew by only 8% to 79.3 tln rubles ($866 bln), compared with 23% in 2022 and the peak of 77% in 2017. In 2014, the growth was 70%.

Overall, in 2023, Russian banks handled retail card transactions worth almost 167 tln rubles ($1.8 tln), up 12% over the year. This is also the smallest increase since 2014. In 2022, the growth was 16%, in 2021, it was 26% (the highest annual growth in ten years), and in 2014, it was 21%.

Card payments for goods and services totaled 54.4 tln rubles ($594 bln), an increase of 16%.

In 2023, banks issued about 442.4 mln cards, or 13.5% more than in 2022.

“The 13% rise in personal cash withdrawals correlates well with consumer inflation, simple as that,” economist Sergei Khestanov, Associate Professor at RANEPA, explains. “Prices went up, and that required greater money supply, including cash.”

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