The following table sets forth the number of replacement and new ATMs deployed in India from financial years
2021 to 2026:

 

 

 

 

 

 

Financial Year
SREY 2022 2023 2024 2025 2026
Total Shipments 41,768 48,000 53,624 60,317 70,909
New Shipments 3,425 3,600 3,700 3,800 3,900
Replacement 38,343 44,400 49,923 56,517 67,009

 

 

 

 

 

 

 

Source: India ATM Market Outlook to 2026, Ken Research, August 2021.
Growth in Branchless Banking

ATMs are currently concentrated in cities and urban areas, with very low penetration in rural areas and skewed
toward the most developed states. The Gol is looking to bridge these gaps and provide broader access to local
residents. Efforts to increase ATM penetration and to increase the efficiency of existing ATMs make India one
of the largest markets for ATM deployment in Asia. Banks are focusing on improving branchless banking in
India by creating e-lobbies, which are specifically designed to improve the customer service and ease of doing
transactions. E-lobbies allow banks to offer customers all banking transactions, information and solutions round
the clock through deployment of cash recyclers, cash dispensers and multi-functioning kiosks. E-lobbies
deployed by banks provide self-service facilities including cash withdrawals, cash deposits, card-to-card
transfers, passbook printing, NEFT and SMS alerts, without the help of physical staff of the bank. With the
changing dynamics of digital payments, ATMs, which are now a prominent fixture in every Indian town, are
proving insufficient for the transitioning requirements of digitally savvy customers. Accordingly, e-lobbies and
cash recyclers have been launched to enhance customer experience.

Growing Cash Recycling Machines in India

The CRM is a self-service terminal that lets the customer make deposit and withdrawal transactions of cash. All
successful transactions are immediately credited or debited in real time, and customers are issued an
acknowledgment slip confirming the transaction. CRMs in India have RBlI-supported note identification
protocols and mechanisms. The recycled notes are then stored in separate cassettes in the machines
automatically for dispensing to the customers. Of the two functions of the machine — deposit and cash
withdrawal — it is for the deposit activity that the CRM uses more effort. The CRMs thus do an exact recycling
process of collecting cash from the depositors and giving it to those who withdraw money.

Cash recycling ATMs are becoming more popular in India as they can detect fake notes and validate, sort and
store cash quickly, reducing banks’ operational costs and contributing to the fight against counterfeiting.

The following chart sets forth the expected cumulative number of CRMs in India from March 31, 2017 to March
31, 2026:

1,20,000.0
1,00,276

1,00,000.0
84,979

80,000.0 70,816

0,000.0 57,574

— 46,059
40,000.0 34,631
taza 28212
20,000.0 } 11,028 13,501 : a UJ
oo mo

FY2017 FY2018 -FY2019 FY2020 © FY2021. «= FY2022.» FY2023.««FY2024. «= FY2025 «= FY2026
Source: India ATM Market Outlook to 2026, Ken Research, August 2021.
The RBI has formulated the Currency Distribution and Exchange Scheme (CDES) to ensure that all bank
branches provide better customer services to members of the public. The RBI has provided several incentives to
banks from time to time for installation of various machines, such as CRMs, to encourage technology absorption
in their currency operations for improved customer service.

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