Mumbai: ATMs are staging a strong comeback in India, aggressive deployment plans from state-run banks showed, as lenders increasingly pivot toward cash recyclers to boost efficiency and cut operating costs.
Over the next six months, up to the first quarter of FY27, banks have floated requests for proposals (RFPs) for nearly 17,350 ATMs, with Union Bank of India, Bank of India, Canara Bank and Indian Bank together accounting for more than 8,000 machines.
What appears to be a contraction in India's ATM base is, in fact, a technology-led transition from conventional ATMs to cash recyclers. Of the total RFPs floated, around 13,100 are for cash recyclers, indicating a strong preference for recycler-led deployments, which account for more than 75% of the planned installations.
Among upcoming cash recycler tenders over the next six months, Union Bank of India plans to deploy around 2,000 machines, Bank of India about 3,700, Canara Bank nearly 1,500, and Indian Bank roughly 1,006.
"We see a fair bit of bank outsourcing and the RFP cycle coming up again in 2026," said Anush Raghavan, chief business officer at CMS Info Systems. "The last wave of asset replacement or expansion was seen in 2023 and 2024. In 2025, we had an increase in ATM interchange fees, which typically leads to expansion of the market and higher outsourcing. But 2025 was bookended by various disruptions, so we expect 2026 to see more RFPs and greater outsourcing activity."
In 2025, the collapse of one of the largest ATM service providers, AGS Transact-which once operated nearly 40,000 ATMs-forced several banks to either shut down older machines or migrate to new service providers. This transition has accelerated the adoption of newer technologies, particularly cash recyclers, as banks look to ensure continuity of service while lowering cash-handling costs and downtime.
An industry executive, who did not wish to be named, said banks are now being far more deliberate in their deployment strategy. "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," the executive said.
Industry data show a marginal decline in overall ATM deployments over the past year due to this disruption. As of end-November, banks had deployed around 207,000 ATMs and cash recyclers across the country, compared with about 215,000 a year earlier, as per central bank data. However, this slowdown underscores a shift in technology rather than a retreat from physical cash infrastructure.
Over the next six months, up to the first quarter of FY27, banks have floated requests for proposals (RFPs) for nearly 17,350 ATMs, with Union Bank of India, Bank of India, Canara Bank and Indian Bank together accounting for more than 8,000 machines.
What appears to be a contraction in India's ATM base is, in fact, a technology-led transition from conventional ATMs to cash recyclers. Of the total RFPs floated, around 13,100 are for cash recyclers, indicating a strong preference for recycler-led deployments, which account for more than 75% of the planned installations.
Among upcoming cash recycler tenders over the next six months, Union Bank of India plans to deploy around 2,000 machines, Bank of India about 3,700, Canara Bank nearly 1,500, and Indian Bank roughly 1,006.
"We see a fair bit of bank outsourcing and the RFP cycle coming up again in 2026," said Anush Raghavan, chief business officer at CMS Info Systems. "The last wave of asset replacement or expansion was seen in 2023 and 2024. In 2025, we had an increase in ATM interchange fees, which typically leads to expansion of the market and higher outsourcing. But 2025 was bookended by various disruptions, so we expect 2026 to see more RFPs and greater outsourcing activity."
In 2025, the collapse of one of the largest ATM service providers, AGS Transact-which once operated nearly 40,000 ATMs-forced several banks to either shut down older machines or migrate to new service providers. This transition has accelerated the adoption of newer technologies, particularly cash recyclers, as banks look to ensure continuity of service while lowering cash-handling costs and downtime.
An industry executive, who did not wish to be named, said banks are now being far more deliberate in their deployment strategy. "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," the executive said.
Industry data show a marginal decline in overall ATM deployments over the past year due to this disruption. As of end-November, banks had deployed around 207,000 ATMs and cash recyclers across the country, compared with about 215,000 a year earlier, as per central bank data. However, this slowdown underscores a shift in technology rather than a retreat from physical cash infrastructure.
