Cash Recycler Machines i.e. CRMs and their benefits - AGS India
                     CashRecyclerMachinesi.e.CRMsand their
benefits
Thebankingindustryhastransformedrapidlyoverthepastfewdecades.Whiledemonetisation fastracked 
digitalisation of traditional bank branches, banks are now installing various
self-servicekiosksatitsbranchestoreducetheburdenontellersandenhancecustomer convenience. One 
such self-service kiosk is theCash Recycler Machineor CRM.
The USP of a CRM is that, in addition to enabling cash withdrawals like an Automated Teller 
Machine or an ATM, it allows the bank customer to deposit cash in the same machine. For 
instance, when a customer withdraws cash from an ATM, the amount is instantly debited – 
likewise, when a customer deposits cash through a CRM, the amount is credited real-time. A 
customerhastwooptionstodepositcashinthemachine–1)Byusingadebitcardand2)By entering the bank
account number.
LetusunderstandhowaCRMbenefitsbothcustomersandbanks: It saves 
time & increases overall efficiency
Acashrecyclermachineautomatesthecashhandlingprocessbyvalidating,sorting,storing
andfurtherdispensingnotes.Thisnegatesmanualinterventionandsavestime.Sincethe deposited notes 
are recycled and processed for withdrawals, CRMs also reduce cash  replenishment trips.
Cashhandlingprocesspreviouslywouldinvolvetheexchangeofmanyhands,thusincreasing the chance 
of shrinkage. With the automation that a CRM offers, the chances of human error are mitigated, and
efficiency is improved.
Ithelpsinoptimisingoperationalcosts
A CRM performs both functions – cash deposit and withdrawal. Therefore, it helps 
bankoptimisetheoverallcosts.Italsoreducestheburdenonphysicaltellers,allowingbankstofocus 
onimprovingcustomerexperience.Infact,itisexpectedthateverynewbankbranchthatopens 
mayhouseatleastoneon-siteATMandaCRM.Thisisbecauseabankbranchincursacostof about INR 60
for processing a cash transaction and with the installation of CRMs this cost is reduced 
significantly, thereby ensuring economies of scale for acquiring banks.
Itisapotentialtooltoreducescounterfeitcurrencyincirculation
CRMsareenabledwithRBI-supportednoteidentificationprotocolsandmechanisms,allowing them to 
detect fake, soiled, and counterfeit notes. Such notes are not accepted by the machines, thus 
preventing them to enter the mainstream banking channel.
Itcanpotentiallyimproveavailabilityofcashintoughgeographicalterrains
SinceCRMsrecyclethedepositedcashanddispensethesamedenominationsforwithdrawals, it reduces 
the downtime of ATMs. This is extremely beneficial in tough geographical terrains where the cash 
replenishment cycle is longer or tougher. In tier-4 and below towns, a CRM can be blessing as 
customers do not have to wait long hours or days together for withdrawing cash.
Itincreasescustomerconvenience
Depositing money in a traditional bank branch entails standing in long queues, interacting with 
tellers and filling deposit slips. For new-age customers and even senior citizens looking for 
convenience,CRMisaboon.Ithasnomanualintervention.Acustomerhastosimplywalkinto a bank 
branch or e-lobby with the cash, enter his/her details on the CRM machine, insert the cash in the 
slot and confirm. The money is deposited real-time – in minutes, making it more convenient for 
customers. With interoperability of CRMs, now customers can walk into any CRM, irrespective of 
the bank and complete the cash deposit process.
Additionally, we are likely to see an increased deployment of CRMs – given the RFPs already 
floated in the market. CRMs will also be a key element inDigital Banking Unitsset up by 
ScheduledCommercialBanks.Thisself-serviceterminalwillcontinuegainingmomentumasit will reduce 
banks’ operational costs, improve efficiency and increase customer satisfaction.
 AGS  TransactTechnologiesLtd .,oneofthelargestintegratedomni-
channelpaymentsolutionsprovidersinIndia,intermsofprovidingdigitalandcash-
basedsolutionstobanksandcorporate
clients,manages4,704CRMsunderitsbankingoutsourcingsegment(asonSeptember2022).