Axis Bank seeking new ATM vendor due to service issues

Axis Bank is negotiating to take over 3,500 to 4,000 ATMs from AGS Transact Technologies. This move comes as service quality from AGS has been declining. Before finalizing the deal, Axis Bank plans to conduct an audit of the ATMs. The bank confirmed it is in discussions with AGS and is considering options for the takeover. The agreement between the two is a "Brown Label ATM" arrangement. In this model, AGS manages the entire lifecycle of the ATMs, while Axis Bank’s branding appears on them. This setup helps banks expand their ATM networks without heavy investments. Currently, Axis Bank operates over 15,000 ATMs in India. Despite the issues with AGS, 80-85% of Axis’s ATMs continue to operate normally. Other banks, including State Bank of India and ICICI Bank, have also been affected by AGS’s financial issues. AGS once managed over 75,000 ATMs but has had to move more than half of them to different providers. AGS is facing significant financial troubles, with debts totaling ₹726 crore. Credit rating agencies have downgraded the company’s ratings, indicating a high risk of default. AGS's ongoing issues have affected the ATMs it manages for multiple banks across the country.