transitioning toward cash recycler machines (CRMs) that improve efficiency, reduce operating costs, and provide faster service to customers.

Over the next six months, up to the first quarter of FY27, banks have issued requests for proposals (RFPs) for nearly 17,350 ATMs, signaling renewed growth momentum in the sector. A major share of these deployments is being driven by Union Bank of India, Bank of India, Canara Bank, and Indian Bank, collectively accounting for more than 8,000 machines.

Strong shift toward cash recyclers

The apparent decline in the number of traditional ATMs is actually part of a technology-led transformation. Of the total RFPs floated, about 13,100 machines are cash recyclers, representing over 75% of planned installations.
These advanced machines support both cash deposits and withdrawals, helping banks reduce cash-handling costs, improve uptime, and streamline branch operations.

Bank-wise deployment outlook

• Union Bank of India: ~2,000 cash recyclers planned
• Bank of India: ~3,700 machines expected
• Canara Bank: nearly 1,500 units
• Indian Bank: about 1,006 deployments

Industry experts expect 2026 to see a further rise in outsourcing and RFP activity, as banks emphasize modernizing ATM infrastructure and enhancing customer convenience.

⚠ Industry disruptions accelerating change

The ATM industry witnessed notable disruptions in 2025, particularly after the collapse of AGS Transact, a major service provider that previously operated close to 40,000 ATMs.
Banks were forced to shut down ageing machines or migrate to new vendors, hastening the shift to cash recyclers. The move has helped institutions ensure service continuity, lower downtime, and reduce operational expenses.

✅ Summary

• Banks have issued RFPs for ~17,350 ATM units up to Q1 FY27.
• Over 75% (about 13,100) of these will be cash recyclers instead of traditional ATMs.
• Major contributors: Union Bank of India, Bank of India, Canara Bank, Indian Bank.
• 2026 is expected to see increased outsourcing and higher RFP activity.
• Industry disruptions in 2025 (including the collapse of AGS Transact) accelerated modernization and migration to cash recyclers.

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