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

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ATMs CRMs Unveiling Their Benefits in
Indias 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
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• 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
• 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.
• , 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 trips by
• 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

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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 247. 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.