In fact, they are expanding capabilities in India, anticipating continued demand for cash withdrawals in rural areas.
To be sure, banks – both private and government-owned – have slowed down ATM installation in new urban locations.
Himanshu Pujara, Managing Director, Asia Pacific, Euronet, said ATMs are still very relevant for cash customers in India, especially in tier-2 to tier-6 cities. “Our strategy is to continue deploying and investing in the ATM business. Importantly, we need to be very focused and diligent as far as our site selection strategy is concerned,” he said.
Banks and operators like Euronet are of the view that it makes no sense to have ATMs in the top 10 metros. is i Transactions have become heavy on cash withdrawals.
Cash withdrawals from ATMs have slowed down in major cities, say top bankers, as payments through UPI (United Payments Interface) clearly dominate. As far as the top 10 cities are concerned, QR codes supporting digital mode of payments can be found everywhere. UPI processed a record 7.3 billion transactions worth over Rs 12 lakh crore in October.
“I think the strategy should be more in terms of going into semi-urban and rural areas, where there is still a customer base that is dependent on cash,” Pujara said.
Diebold Nixdorf has announced its new 27,000 sq ft manufacturing facility in Bengaluru to manufacture ATMs and cash recycling machines.
The unit, with a capacity to manufacture over 18,000 machines per year, is set to start full-fledged production in December. The plant has been set up in India with its contract manufacturing partner. NASH Industries,