India’s leading banks are planning to install more than 17,000 ATMs across the country’s branch banking network as part of a bid to promote cash recycling.
Editorial
This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.
In total, 17,350 machines will be installed over a six-month period with a handful of state-run banks leading the way.Â
Four banks – Bank of India, Union Bank of India, Canara Bank and India Bank – will collectively be responsible for 8,000 machines.
India was one of the first countries to promote the use of digital currencies and payments and to restrict the use of cash. However, the latest drive to increase the number of ATMs should not be seen as an effort to turn back the clock.Â
The majority (75%) of the newly deployed ATMs will be cash recyclers rather than conventional ATMs. According to Indian banking authorities, this will enhance operational efficiency and reduce costs.
The move has been partly caused by the collapse of Indian payments platform AGS which was declared insolvent in August 2025. AGS was one of the largest ATM service providers in India, supplying over 40,000 machines.
The company’s collapse led to many older ATMs being scrapped or replaced by newer machines from alternative vendors.Â
According to a banking executive quoted by the Economic Times of India, banks are adopting a more demanding approach to their ATM procurement. “The focus is no longer just on adding ATMs, but on deploying smarter machines that can recycle cash, reduce replenishment frequency and improve uptime. After the AGS episode, banks are prioritising vendor stability, technology capability and long-term cost efficiency over sheer scale.”
Â