Amid growing demand for more cash in circulation, banks have floated request for proposal for procuring about 17,000 ATMs and cash recycler machines (CRMs) in the current financial year so far, reported Business Line.
Overall, these orders for new ATMs/CRMs account for nearly 6.5 per cent of the existing total installed base in the country and more demand is expected to flow, according to Ravi Goyal, Chairman & Managing Director, AGS Transact Technologies Ltd (AGSTTL).
“...We are close to finalising a couple of large order wins, including a large order for 8,000 ATMs and CRMs under managed service portfolio for two leading banks. These two orders will start coming on stream from the next quarter onwards and will be rolled out over the next 12 months,” Goyal said in an earnings call.
He also said that AGSTTL is also focusing on gradually increasing its CRM base, which will give additional revenue cash withdrawal, as well as deposit transactions.
On the macro front, Goyal noted that positive regulatory guidelines, such as the inauguration of DBUs (digital banking units) and increase in interchange rate are paving the way for growth in his company’s topline.
Additionally, the value of the currency in circulation stood at ₹31.3-lakh crore, as of January 23, according to RBI data as compared with ₹17.7-lakh crore worth of notes in circulation pre-demonetisation.
“This increase, coupled with the formalisation of Indian economy led by the Government of India’s continued commitment towards boosting the digital infrastructure will collectively propel the growth of overall payment ecosystem,” he said..
As on December 31, 2022, the company had installed 2,46,427 merchant POS terminals across the country, which includes approximately 51,977 POS terminals across OMC fuel retail outlets.