ATMs & CRMs – Unveiling Their Benefits in India’s Evolving Payment Landscape - AGS India
                     ATMs & CRMs – Unveiling Their Benefits in 
 India’s Evolving Payment Landscape
The Indian economy has witnessed a remarkable blend of 
cash and  digital payments. While digital transactions have 
gained traction, cash  remains a vital mode of payment, 
offering reliability and convenience.
Automated Teller Machines (ATMs) have emerged as pioneering 
fintech  marvels, enhancing accessibility to cash in both rural 
and urban areas.  ATMs played a crucial role in promoting 
financial inclusion before the  advent of digital payments and 
continue to play an important role today.
The Rise of Digital Payments and Coexistence with Cash:
Digital payments in India have experienced a staggering growth 
of about  56% in transactional volume in FY22-23, primarily 
driven by the Unified  Payments Interface (UPI). At the same 
time, as of March 3, 2023, the  currency in circulation stood at 
33.45 lakh crore, according to data  released by the Reserve 
Bank of India (RBI). This suggests that as the  payment 
landscape transforms, cash and digital payments will coexist.
Amid this evolving scenario, Cash Recycling Machines 
(CRMs) are  gaining popularity as an innovative solution.
Differentiating ATMs and CRMs:
1. ATMs: Automated Teller Machines serve as self-service terminals  
enabling customers to conduct various banking transactions such as cash  
withdrawals, fund transfers, balance inquiries, and bill payments. ATMs  
have been instrumental in driving financial inclusion by providing access 
 to banking services and cash for many Indians.
2. , on the other hand, not only dispense cash but also accept deposits. These  
machines efficiently sort, count, and store banknotes, allowing for their  
reuse when needed. By reducing manual cash handling, CRMs enhance  
efficiency, security, and cost-effectiveness for banks. Furthermore, the  
deployment of CRMs reduces the need for frequent cash replenishment  
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The Growing Popularity of CRMs:
According to a media report released in February 2023, Cash 
Recyclers  account for 20% of the total 250,000 installed ATMs 
in India. The  Reserve Bank of India (RBI) and the National 
Payments Corporation of  India (NPCI) allowing interoperability 
on CRMs will further bolster their  growth. CRMs are 
predominantly deployed at bank branches, shifting  the deposit 
process from tellers to self-service terminals, thus reducing  
human intervention and enhancing overall operational 
efficiency.
Consequently, the cost of a cash transaction at a bank 
branch can be  significantly reduced with the 
implementation of CRMs.
Benefits for Small Business Owners/Merchants:
CRMs offer noteworthy advantages to small business owners 
and  merchants who primarily deal in cash. They can 
conveniently deposit  their daily, weekly, or monthly 
collections using CRMs, eliminating the  need to visit the 
bank, and facilitating real-time deposits. Additionally,  
merchants can have access to all these facilities almost 
24×7. This  streamlined process enhances the overall 
banking experience for  merchants, fostering operational 
efficiency across the channel.
AGS Transact Technologies’ Expertise in CRMs:
As one of the largest integrated omni-channel payment 
solutions  providers in India, AGS Transact Technologies Ltd 
(AGSTTL) boasts a  managed base of 5,178 CRMs as of March 
31, 2023. AGSTTL assists  banks in deploying these versatile 
terminals at their branches or off-site  locations. Furthermore, 
as the second-largest company in India in terms  of revenue 
from ATM managed services under the outsourcing model,  
AGSTTL efficiently manages these CRMs on behalf of banks.
In summary, while both ATMs and CRMs facilitate various 
banking  transactions, CRMs offer the additional functionality of 
cash recycling,  making them more advanced and sophisticated 
machines. Government  initiatives such as the establishment of 
Digital Banking Units or DBUs  are likely to encourage banks to 
deploy more CRMs compared to ATMs,  aiming for economies of 
scale in the evolving payment landscape of  India.