ATMs & CRMs – Unveiling Their Benefits in India’s Evolving Payment Landscape - AGS India


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Uploaded on Jun 30, 2023

Category Business

Both ATMs and CRMs facilitate various banking transactions, CRMs offer the additional functionality of cash recycling, making them more advanced and sophisticated machines.

Category Business

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ATMs & CRMs – Unveiling Their Benefits in India’s Evolving Payment Landscape - AGS India

ATMs&CRMs– UnveilingTheirBenefitsinIndia’sEvolvingPaym entLandscape The Indian economy has witnessed a remarkable blend of cash anddigitalpayments.Whiledigitaltransactionshavegainedtraction,c ashremainsavitalmodeofpayment,offeringreliabilityandconvenience . AutomatedTellerMachines(ATMs)haveemergedaspioneeringfintechm arvels, enhancing accessibility to cash in both rural and urban areas.ATMsplayed a crucial role in promoting financial inclusion before theadventofdigitalpaymentsandcontinuetoplayanimportantroletod ay. TheRiseofDigitalPaymentsandCoexistencewithCash: DigitalpaymentsinIndiahaveexperiencedastaggeringgrowthofabo ut56% in transactional volume in FY22-23, primarily driven by theUnifiedPayments Interface(UPI). At the same time, as of March 3, 2023, thecurrency in circulation stood at 33.45 lakh crore, according to datareleased by the Reserve Bank of India (RBI). This suggests that as thepaymentlandscapetransforms,cashanddigitalpaymentswillcoe xist. Amidthisevolvingscenario,CashRecyclingMachines(CRMs)aregaining popularityasaninnovativesolution. DifferentiatingATMsandCRMs: 1. ATMs: Automated Teller Machines serve as self-service terminalsenabling customers to conduct various banking transactions such as cashwithdrawals, fund transfers, balance inquiries, and bill payments. ATMshavebeeninstrumentalindrivingfinancialinclusionbyprovidingaccesstob ankingservicesandcashformanyIndians. 2. ,ontheotherhand,notonlydispensecashbutalsoacceptdeposits.Thesemachines efficiently sort, count, and store banknotes, allowing for theirreuse when needed. By reducing manual cash handling, CRMs enhanceefficiency, security, and cost- effectiveness for banks. Furthermore, thedeployment of CRMs reduces the need for frequent cash replenishmenttripsby TheGrowingPopularityofCRMs: AccordingtoamediareportreleasedinFebruary2023,CashRecyclers account for 20% of the total 250,000 installed ATMs in India. TheReserve Bank of India (RBI) and the National Payments Corporation ofIndia (NPCI) allowing interoperability onCRMswill further bolster theirgrowth. CRMs are predominantly deployed at bank branches, shiftingthe deposit process from tellers to self- service terminals, thus reducinghumaninterventionandenhancingoveralloperationaleffici ency. Consequently,thecostofacashtransactionatabankbranchcanbesignifi cantlyreducedwiththeimplementationofCRMs. BenefitsforSmallBusinessOwners/Merchants: CRMs offer noteworthy advantages to small business owners andmerchants who primarily deal in cash. They can conveniently deposittheirdaily,weekly,ormonthlycollectionsusingCRMs,eliminating theneed to visit the bank, and facilitating real-time deposits. Additionally,merchants can have access to all these facilities almost 24×7.Thisstreamlined process enhances the overall banking experience formerchants,fosteringoperationalefficiencyacrossthechannel. AGSTransactTechnologies’ExpertiseinCRMs: As one of the largest integrated omni-channel payment solutionsproviders in India,AGS Transact Technologies Ltd(AGSTTL) boasts amanaged base of 5,178 CRMs as of March 31, 2023. AGSTTL assistsbanks in deploying these versatile terminals at their branches or off- sitelocations.Furthermore,asthesecond- largestcompanyinIndiaintermsof revenue from ATM managed services under the outsourcing model,AGSTTLefficientlymanagestheseCRMsonbehalfofbanks. In summary, while both ATMs and CRMs facilitate various bankingtransactions, CRMs offer the additional functionality of cash recycling,making them more advanced and sophisticated machines. Governmentinitiatives such as the establishment ofDigital Banking Unitsor DBUsarelikelytoencouragebankstodeploymoreCRMscomparedtoA TMs,aiming for economies of scale in the evolving payment landscape ofIndia.