CMS Info Systems will set up 3,000 ATMs by March for State Bank of India (SBI) as the country''s largest lender looks to expand the outsourced model.
The outsourced model or Brown Level ATM (BLA) is managed by the service provider on behalf of bank. Most of these ATMs are offsite ATMs.
"CMS has received mandate from SBI for a deployment of 3,000 ATMs. As a part of the term sheet, CMS will select the site, deploy ATMs, provide cash management services, regular maintenance, and upkeep of ATMs," CMS Info Systems President Manjunath Rao told PTI.
With this, he said, total number of BLAs under CMS Info Systems would increase to 5,000.
He said the company would invest Rs 200 crore for putting up new ATMs and hire 2,000 employees for managing these sites.
The contract is valid for seven years, extendable up to three years on mutual agreement, he said.
Asked about revenue generation from this contract, he said, it should be through transactions and this part of business should be profitable in the next five years.
CMS provides end-to-end ATM management service. Besides CMS, the other major players in ATM management are AGS Transact, SIS and Writers Corp.
According to data from the Reserve Bank of India, the banking system had 1,13,981 onsite ATMs and 96,068 offsite ATMs at the end of September 2020.