Payments
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March 11, 2025
ATMs across India are having a cash shortage problem. This is due to the collapse of AGS Transact Technologies, which both operates and replenishes ATMs with cash, according to a report by First Post.
In February 2025, employees at AGS refused to fill many ATMs after they claimed they had not been paid in months. More recently, the company defaulted along with its subsidiary Securevalue India. It currently owes nearly $82.5 million to its creditors, including the State Bank of India and Axis Bank.
The issue according to multiple credit rating agencies was due to a massive drop in liquidity. Now AGS is facing insolvency claims in court due to unpaid dues. It has currently, “defaulted in the payment of principal repayment obligations for certain outstanding borrowings,” according to a report by Economic Times.
As a result of this problem, now banks such as State Bank of India and ICICI Bank are struggling to service nearly 38,000 ATMs.
In the U.S., another major operator of ATMs: Paramount Management Group also collapsed in December 2024 following a lengthy lawsuit due to missed fee payments to investors. Read about it here.
