Banks in India have raised concerns about a shortage of automated teller machines (ATMs) and have reportedly communicated this shortage to the government and the Reserve Bank of India (RBI). The banks have emphasized the need for clarity in procurement norms through the government e-marketplace and have highlighted the low capacity of ATM vendors as a significant issue.
This shortage is attributed to the ‘Make in India’ guidelines implemented in FY20, which initially resulted in a delay in vendors setting up operations in India.
Additionally, bankers have stressed the impact of the ATM shortage on their migration to lockable cassette mechanisms and have cited infrastructure issues as contributing factors. Furthermore, there is a growing demand for cash recycling machines as banks aim to enhance efficiency and customer experience. With banks anticipating an increase in demand as they refresh their ATM technology, industry experts believe that the industry is prepared to meet this demand.
