India’s ATM Network Set for Major Upgrade with Advanced Tech

ATMs are staging a strong comeback in India as state-run banks accelerate deployment plans. Lenders are increasingly focusing on cash recyclers to enhance operational efficiency and reduce 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, reflecting renewed growth in the sector. 

Union Bank of India, Bank of India, Canara Bank, and Indian Bank together account for more than 8,000 of these planned machines.

Shift Towards Cash Recyclers

What may appear as a contraction in the ATM base is actually a technology-driven transition from conventional ATMs to cash recyclers. Of the total RFPs floated, around 13,100 are for cash recyclers, representing more than 75% of planned installations. 

This trend highlights the growing preference for advanced machines capable of handling deposits and withdrawals, ensuring faster service and lower cash-handling costs.

Bank-Wise Deployment Plans

Among the upcoming tenders, Union Bank of India plans to deploy approximately 2,000 cash recyclers, Bank of India around 3,700, Canara Bank nearly 1,500, and Indian Bank roughly 1,006. Experts indicate that 2026 is likely to witness increased outsourcing and a surge in RFP activity, as banks focus on modernising their ATM infrastructure.

Impact of Industry Disruptions

The ATM sector faced significant disruptions in 2025, particularly following the collapse of AGS Transact, a major ATM service provider that once operated nearly 40,000 machines. 

Banks were compelled to shut down older machines or migrate to new service providers. This has accelerated the adoption of cash recyclers, allowing lenders to maintain service continuity while reducing downtime and operational costs.

Also Read: RBI Cancels Registration of 35 NBFCs!

Conclusion

The resurgence of ATMs in India underscores a technology-led transformation in the banking infrastructure. With state-run banks leading the way in deploying cash recyclers, customers can expect more efficient, reliable, and advanced ATM services. The trend not only enhances accessibility but also positions the banking sector to meet the growing demands of a cash-dependent economy.

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