CMS wins Rs.450 cr contract to deploy ATMs for SBI
Latest News »
- Rs 2,000 notes: No discussion within govt on withdrawal, says Arun Jaitley
- Govt to set up ministers’ panel to oversee PSU bank merger: Arun Jaitley
- Gold prices extend losses, shed Rs100 on muted demand
- Apex Frozen Foods IPO subscribed 1.2 times till 2.45pm on Day 2
- Suresh Prabhu takes moral responsibility for train accidents, offers to quit
Mumbai: CMS Info Systems, a cash management services company, won a contract of at least Rs.450 crore from State Bank of India ( SBI) to deploy more than 7,850 automated teller machines (ATMs) across the country, the company said in a statement on Friday.
SBI currently has around 30,500 ATMs, according to its website.
CMS said it will install, maintain and provide support services for the ATMs for seven years, adding that the ATMs will be deployed across India “with a significant focus on semi-urban and rural areas”. CMS will install ATMs manufactured by Nautilus Hyosung Inc. of Korea.
Rajiv Kaul, executive vice-chairman and chief executive of CMS Info Systems, said the contract is for “possibly the single-largest ATM deployment in the world”.
The domestic ATM market has witnessed significant growth in the past four years. India had 124,072 ATMs operational as on 30 July, according to the Reserve Bank of India (RBI) website. But penetration is low at 110 ATMs per million population, compared with 900 on average in other emerging markets, CMS said.
China has more than 200 machines per million people and the US 1,300 ATMs per million people, Navroze Dastur, managing director (financial services) at NCR Corp. India Pvt. Ltd, which manufactures and manages ATMs in India, had said in an interview published by Mint on 23 August.
NCR expects the number of ATMs in India to increase to 400,000 by 2017 from about 124,072 now.
This will be largely driven by banks expanding in the villages and government initiatives such as the direct benefits transfer scheme. “Today, we are seeing a 25% year-on-year growth in ATM penetration and this will increase, but we have a long way to go,” said Dastur.
White label ATMs (WLAs), for which RBI has issued licences, are also expected to help in the penetration. These will be private label ATMs and will not belong to any bank’s brand.
On 27 June, Tata Communications Payment Solutions Ltd, a subsidiary of Tata Communications Ltd, unveiled Indicash, touted as India’s first network of white label ATMs. The first Indicash ATM was inaugurated at Chandrapada, a village in Maharashtra’s Thane district.
Tata Communications plans to deploy 15,000 Indicash ATMs in three years—67% of which will be in semi-urban and rural areas and 33% in metro and urban markets.