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

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

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

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  1. ATMs & CRMs – Unveiling Their Benefits in India’s EvolvingPaymentLandscape The Indian economy has witnessed a remarkable blend of cash and digital payments. While digital transactions have gained traction, cash remainsavitalmodeof payment, offering reliabilityand convenience. AutomatedTeller Machines(ATMs) haveemerged aspioneering fintech marvels, enhancing accessibility to cash in both rural and urban areas. ATMs played a crucial role in promoting financial inclusion before the adventof digitalpayments andcontinue to playan importantrole today. TheRiseofDigitalPaymentsandCoexistencewithCash: 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 circulation stood at 33.45 lakh crore, according to data released by the Reserve Bank of India (RBI). This suggests that as the paymentlandscapetransforms,cashanddigitalpaymentswillcoexist. Amid this evolving scenario, Cash Recycling Machines (CRMs) are gainingpopularity as aninnovative solution. Differentiating ATMsandCRMs: 1.ATMs:Automated Teller Machines serve as self-serviceterminals 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 tobanking services and cashfor many Indians.

  2. 2. , 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 tripsby TheGrowingPopularityofCRMs: According to a media report released in February 2023, Cash Recyclers accountfor 20%of the total250,000 installedATMs 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 arepredominantly deployedat bankbranches, shifting the deposit process from tellers to self-service terminals, thus reducing humanintervention and enhancingoverall operational efficiency. Consequently, the cost of a cash transaction at a bank branch can be significantlyreduced withthe implementationof CRMs. BenefitsforSmallBusinessOwners/Merchants: CRMs offer noteworthy advantages to small business owners and merchants who primarily deal in cash. They can conveniently deposit theirdaily,weekly,or monthlycollectionsusingCRMs, eliminatingthe need to visit the bank, and facilitating real-time deposits. Additionally, merchants can have access to all these facilities almost 24×7.This streamlined process enhances the overall banking experience for merchants,fostering operational efficiency acrossthe channel. AGS TransactTechnologies’ ExpertiseinCRMs:

  3. As one of the largest integrated omni-channel payment solutions providersin India, AGS TransactTechnologies 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 onbehalf of banks. Insummary, whileboth ATMsand CRMs facilitatevarious banking transactions, CRMs offer the additional functionality of cash recycling, making them more advanced and sophisticated machines. Government initiativessuchastheestablishmentofDigitalBankingUnitsorDBUs are likely to encourage banks to deploy more CRMs compared to ATMs, aiming for economies of scale in the evolving payment landscape of India.

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