Several banks are exploring options to shift their cash management operations away from AGS Transact Technologies, following the company’s liquidity crisis that has disrupted ATM services across multiple cities.
AGS Transact, which manages 32,151 ATMs and handles ₹1,933 crore in daily cash replenishments, has defaulted on debt repayment obligations, affecting not only its own financial stability but also the services of its subsidiary, Securevalue India Ltd (SVIL).
AGS Transact’s ATM Network & Bank Clients Impacted
AGS is India’s second-largest ATM service and cash management provider, operating across 2,200 cities and towns. Major banks dependent on on the company include:
- ICICI Bank
- YES Bank
- Axis Bank
- State Bank of India (SBI)
- Punjab National Bank (PNB)
- HDFC Bank
- Federal Bank
- Bank of Maharashtra
- Dhanlaxmi Bank
- Utkarsh Small Finance Bank
YES Bank acknowledged the disruption, notifying customers about ATM unavailability on its website. Other affected banks, such as ICICI Bank and Axis Bank, are yet to publicly address the impact.
AGS Transact’s Credit Rating Downgrade
The crisis deepened after CRISIL and India Ratings downgraded AGS Transact’s long-term bank facilities to ‘D’, citing delays in debt servicing in December 2024 and January 2025. The rating agencies noted that:
- Liquidity issues worsened due to delayed receivables collection.
- Non-adherence to service level agreements (SLAs) led banks to withhold payments.
- Statutory dues remained unpaid, further straining AGS’s financial position.
India Ratings stated that AGS plans to improve cash flow through a revised collection strategy and fund infusion via promoter-backed share warrants.
Banks with Exposure to AGS Transact
Several banks and financial institutions have significant exposure to the company, including:
- Investec Bank Plc UK
- State Bank of India (SBI)
- IDFC First Bank
- Aditya Birla Finance
- IndusInd Bank
- Bandhan Bank
- HDFC Bank
- Federal Bank
- Bajaj Finance
- Dhanlaxmi Bank
As of now, AGS Transact’s communications team has not responded to requests for clarification.
Next Steps for Banks & the Cash Management Sector
With multiple banks re-evaluating their dependence on AGS, alternative cash management service providers such as CMS Info Systems and Writer Safeguard may see an uptick in business.
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The Indian ATM and cash management sector faces growing challenges, including liquidity constraints, rising operational costs, and compliance requirements. The AGS crisis has sparked concerns about financial transparency, prompting banks to diversify their service providers to prevent further disruptions.
The situation remains fluid, with banks expected to make decisions in the coming weeks on whether to continue their association with AGS or move to alternative service providers.
