Has there been a problem in withdrawing money from ATM? A few days ago, the photo of ICICI Bank’s ATM not having enough cash in some places went viral on the Internet. Indeed, the employees of AGS Transaction Technologies refused to put cash in the ATM machine, which led to the problem. Employees of ATM transactions have not received salary for several months. In protest, he refused to put cash. Let’s know what the whole matter is.
AGS Transact is the company of Ravi Goyal. He holds a 60.5 per cent stake in the company. It is one of the largest companies in India providing cash management services. This company with about 15 per cent market share is on the verge of bankruptcy. People associated with this case have given this information. Banks can declare this company as a non-performing asset (NPA). If this happens, the risk of AGS transactions insolvency will increase.
Clients of the AGS Transaction say that the company has been facing a problem of money for almost a year. Goyal’s 10 percent of the shares are already mortgaged to the banks. A senior officer of the bank said on the condition of anonymity, “We get complaints from customers that there are not enough money in the ATM. When we investigated it, we found that money was not being put in these ATMs. Later. In we found that this problem was mostly with those ATMs in which the responsibility of inserting money is on the ATS transaction. “
Industry sources say that the risk for about 1,000-1,500 crore cash inventory may increase, as it has not been put in ATMs. Moneycontrol could not independently verify this claim. The senior officer of another private bank said that the default started increasing in December. Then the banks started telling RBI about this. Banks are required to tell RBI about any kind of service related problem.
According to a Crisil rating report, the AGS transaction had a network of around 3,800 ATMs and cash recycle machines (CRM) as of March 31 last year. The company’s cash management business is with its subsidiary Securevalue India Limited. The company’s clients include several legendary banks. Among them are ICICI Bank, Axis Bank, HDFC Bank and State Bank of India.
Executive of a big bank said that RBI has received information about the matter. It was necessary for us to tell the regulator about this problem, because we cannot take the services of other service providers. To do this, we have to give the reason to the RBI. Currently, most banks have stopped paying cash to the AGS transactions.