SBI is probably the most affected, with almost 14,000 ATMs changing into unserviceable, folks within the know mentioned. 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 start out withdrawing its ATMs from the AGS Transact community after dealing with 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 difficulty mentioned 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 might 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,” mentioned an official within the know. “Whereas banks have been dealing with 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 advised ET that the corporate was migrating the ATMs to different service suppliers.”The corporate is actively working with our banking prospects and has migrated a number of critically affected ATMs in our community to look networks to make sure minimal disruption,” AGS Transact mentioned in an emailed response to ET’s questions. “We now have been regularly resuming operations throughout our community and can proceed to contemplate 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 resembling Crisil and India Scores have downgraded its credit score rankings, singling a excessive danger of default on debt funds.
The ATM service supplier mentioned 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 unbiased administrators have resigned citing private causes.
Different giant banks which have been affected by the troubles at AGS Transact are India Put up 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 meting out machines in contrast with the extra affected ones.