Exclusive: AGS Transact Technologies eye contracts with SBI, Union Bank of India and PNB for 18,000 ATMs and technology services

The company also won an order for deploying 2,500+ ATMs from SBI under the outsourcing model, which is expected to conclude by the end of FY25.

AGS Transact Technologies, a digital payment solutions and automation technology provider for bank automatic teller machines (ATMs) and Cash Recycler Machines (CRMs), is eyeing contracts for around 18,000 ATMs with State Bank of India (SBI), Union Bank of India and Punjab National Bank, Ravi Goyal, Chairman and Managing Director and Stanley Johnson, Executive Director, said.

“In this year, we have received a few orders from the State Bank of India (SBI) and some contracts with Union Bank of India and Punjab National Bank for ATMs and cash recycler machines. These banks have floated requests for proposal (RFP) for around 18,000 ATMs. Union Bank of India has raised an RFP for 3,500 ATMs and Punjab National Bank for 5,000 machines and these are on the opex model where they will not buy the machines but look at a fixed model, they said and added that the company is also checking SBI for 11,000 ATMs," they said.

A cash recycler machine automates the cash handling process by validating, sorting, storing and further dispensing notes.

The company also won an order for deploying 2,500+ ATMs from SBI under the outsourcing model, which is expected to conclude by the end of FY25.

Johnson highlighted that to expand their footprint in tier 2 and tier 3 cities and towns, banks are ordering cash recycler machines and ATMs. “Banks are expanding their ATM network in tier 2 and tier 3 cities. They are introducing new ATM machines. They want to start the digital journey of a bank in rural and semi-rural areas and hence, they are working on introducing ATMs and CRMs,” Johnson said.

In addition to this, the company has launched a Prepaid Payment Instruments (PPI) platform, an application to make payments and monitor fuel related transactions and details with Hindustan Petroleum Corporation Limited. “We have launched a new product, a mobile application with HPCL and this is currently in the pilot stage in some fuel stations in Mumbai. And we have seen good response from this,” Goyal said.

On the demand for hiking the interchange fee for transactions made in an ATM, CATMI has made the representation to the regulators and may hear something soon from them. “We (Confederation of ATM Industry - CATMI) have made the representation to both the regulators and we may see some development happening soon," they said.

Earlier this year, CATMI requested the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) to increase the interchange fee for cash withdrawals. CATMI wants the fees raised to a maximum of Rs 23 per transaction. In 2021, the fee was hiked from Rs 15 to Rs 17, and the upper limit for the charge was set at Rs 21.