The following chart sets forth the expected revenue and growth rate of India’s cash management services market
during financial years 2022 to 2026:

     

 

70,000.0 33.8% 35.0%
60,295.4
60,000.0 57,625.0 58,940.9 sie
50,000.0 25.0%
42,163.8
E 40,000.0 20.0% F
2 30,000.0 15.0% 3
~
20,000.0 10.0% ©
10,000.0 + 5.0%
oo ! 0.09%
FY2022 FY2023 FY2024 FY2025 FY2026
mmm Zin million B= Growth (%)

Source: India ATM Market Outlook to 2026, Ken Research, August 2021.
The following table sets forth the contribution of each type of service under India’s ATM cash management
services market to total market revenue for financial years 2021 and 2026:

 

 

 

 

 

 

 

 

Financial Year 2021 Financial Year 2026
Types of Services Revenue Revenues Revenue Revenues
Share (in %) in Million Share (in %) in Million

ATM Replenishment 40.0% 13,075.5 48.0% 28,941.8
cIT 27.5% 8,989.4 25.7% 15,495.9
CPD 17.0% 5,557.1 15.1% 9,104.6
Others 15.5% 5,066.8 11.2% 6,753.1
Total 100.0% 32,688.8 100% 60,295.4

 

 

 

 

 

 

Source: India ATM Market Outlook to 2026, Ken Research, August 2021.
ATM Replenishment

In the future, it is expected that the market share of ATM replenishment will further increase, as new ATMs.
installations in rural areas increase in line with the increase in the number of banking facilities across India. The
ATM replenishment revenues are also set to increase due to the implementation of cassette swapping in ATMs
mandated by the RBI.

Cash in Transit

In financial year 2020, CIT’s contribution in terms of revenues under cash management services was due to an
increase in the licensing of new bank branches. CIT service development is directly connected to an expansion
in the number of bank branches, and because the number of bank branches is expected to grow, the demand for
CIT services is also expected to grow. As of December 31, 2020, there were 3,367 currency chests and 2,782
small coin depots/sub-depots in India.

Cash Pickup and Delivery/Retail Cash Management

Retail collection points served by cash management companies increased from 130,000 as of March 31, 2017, to
155,000 as of March 31, 2021. The number of retail collection points decreased during financial year 2021 due
to the forced shutdown of retail touch points as part of the restrictions and lockdowns imposed by the Gol.
Others

Other cash management services include vaulting services, bullion management and cash processing. It is
expected that the share of the outsourcing of currency chest to cash management companies will increase

significantly as banks can save approximately 35.0% to 50.0% of their expenditure incurred on maintaining the
currency chest.

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