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

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

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  1. ATMs&CRMs–UnveilingTheir Benefits in India’s 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 modeof payment, offering reliabilityand convenience. AutomatedTeller 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 digitalpayments and continueto play animportant role 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 sametime, as of March 3,2023, the currency in

  2. 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 RecyclingMachines(CRMs)aregainingpopularityasaninnovativesolution. DifferentiatingATMsandCRMs: ATMs:Automated Teller Machinesserve 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 tobanking services and cashfor 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 tripsby TheGrowingPopularityofCRMs: According to a media report released in February 2023, Cash Recyclers account for20%ofthetotal250,000installedATMsinIndia.TheReserveBankof 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 tellerstoself-serviceterminals,thusreducinghumaninterventionand enhancingoverall operational efficiency.Consequently, thecost of a cash transaction at a bank branch can be significantly reduced with the implementationof CRMs. BenefitsforSmall Business Owners/Merchants:

  3. 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 facilitatingreal-time deposits. Additionally, merchants can haveaccess to all these facilities almost 24×7.This streamlined process enhances the overall banking experience for merchants, fostering operational efficiency across the channel. AGSTransact Technologies’ ExpertiseinCRMs: As one of the largest integrated omni-channel payment solutions providers in 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 CRMson behalf of banks. Insummary,whilebothATMsandCRMsfacilitatevariousbanking transactions, CRMs offer the additional functionality of cash recycling, making themmoreadvancedandsophisticatedmachines.Governmentinitiativessuch as the establishment of Digital Banking Units or DBUs are likely to encourage banksto deploy moreCRMs compared toATMs, aiming foreconomies of scale inthe evolving payment landscape ofIndia.

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