AGS Transact Faces ATM Shutdowns Amid Salary Delays
AGS Transact, India’s second-largest ATM manager, is experiencing significant operational disruptions as unpaid salaries have led frustrated staff to shut down several ATMs serving major banks, including ICICI Bank, Yes Bank, and Axis Bank. This cash crunch has resulted in defaults on bank loans, statutory payments, and employee salaries.
Reports indicate that some ATMs managed by AGS have become unavailable, prompting Yes Bank to direct customers to alternative branches or ATMs. Employees managing these machines reportedly ceased operations due to mounting salary arrears. Collectively, the three banks operate over 32,000 ATMs and cash recyclers, although the exact number managed by AGS is unclear. As of the end of September, AGS had 32,151 ATMs and cash recyclers in operation.
An ICICI Bank spokesperson acknowledged the disruptions caused by dissatisfied contractors and employees of AGS, advising customers to utilize nearby branches or ATMs for their convenience. The bank is also in the process of transitioning ATM management to other service providers. While Yes Bank did not respond to inquiries, Axis Bank declined to comment, and AGS has not provided any statements regarding the situation.
Founded in 2002, AGS Transact operates in three segments: payment solutions, banking automation solutions, and other automation services for retail and petroleum sectors. As of September 30, the company and its subsidiaries employed over 9,000 individuals, including subcontracted staff. AGS and its subsidiary, Securevalue India, reported a debt of ₹726.3 crore as of February 7.
AGS earns fees from banks for ATM management, with 67% of its ATMs and cash recyclers generating fixed monthly fees, while the remainder operates on a transaction-based fee structure. The company recently disclosed credit rating downgrades by Crisil and India Ratings, along with a default on loan repayments totaling ₹71.6 crore.
