SBI is essentially the most affected, with almost 14,000 ATMs changing into unserviceable, individuals within the know stated. Whereas 7,000-8,000 of these are managed by AGS Transact, there remaining are the place the corporate supplies money replenishment providers.
ICICI Financial institution, one of many earliest banks to begin withdrawing its ATMs from the AGS Transact community after going through service points, is near taking management of its ATMs. The non-public sector financial institution has moved out a majority of its ATMs to different ATM service suppliers like CMS Infosystems and Hitachi India. Folks conscious of the problem stated the lender had raised poor service points with the AGS Transact board in December itself.
Personal sector lender Axis Financial institution has about 5,000 ATMs which can be absolutely managed by AGS Transact and are on the verge of shutting operations.
SBI, ICICI Financial institution and Axis Financial institution didn’t reply to ET’s queries.
“The potential chapter of AGS Transact has left a number of banks scrambling to service their ATMs,” stated an official within the know. “Whereas banks have been going through poor service high quality from the corporate for the final 12 months, they’re additionally struggling to reconcile and transfer their ATMs out of the AGS Transact community.”A spokesperson for AGS Transact informed ET that the corporate was migrating the ATMs to different service suppliers.”The corporate is actively working with our banking clients and has migrated a number of critically affected ATMs in our community to look networks to make sure minimal disruption,” AGS Transact stated in an emailed response to ET’s questions. “We’ve got been steadily resuming operations throughout our community and can proceed to think about migrating ATMs wherever mandatory.”
AGS Transact’s monetary troubles, together with a default on dues totalling ‘726 crore, have led to its potential insolvency. Credit score rankings companies akin to Crisil and India Scores have downgraded its credit score rankings, singling a excessive threat of default on debt funds.
The ATM service supplier stated that an operational creditor, Maxwel Aircon India, plans to provoke insolvency proceedings towards the corporate for non-payment of arrears.
The corporate defaulted on funds in the previous couple of months and 4 of its impartial administrators have resigned citing private causes.
Different giant banks which were affected by the troubles at AGS Transact are India Submit Funds Financial institution (1,000 ATMs) and Sure Financial institution (over 500 ATMs).
ATM operations of banks like HDFC Financial institution, Federal Financial institution, Union Financial institution of India, IDFC First Financial institution, Kotak Mahindra Financial institution, Punjab Nationwide Financial institution, Financial institution of Maharashtra, Financial institution of India have additionally been affected, however to a lesser extent as AGS Transact providers fewer variety of their money shelling out machines in contrast with the extra affected ones.
