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.