Banks globally are moving to a cash recycling mode by combining ATM and cash depositing machines into one, said Hitachi Terminal Solutions India, a subsidiary of Hitachi Channel Solutions, a global player in cash recycling machines.
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Yoshihiro Nakatani, Managing Director, Hitachi Terminal Solutions said, “Our estimate indicates that banks globally have the capacity to install more than 1.1 million cash recycling machines (CRMs) by 2024.”
To cash in on this market opportunity, Hitachi has expanded its capacity to manufacture cash recycling machines (CRM) in India by opening a 1,08,000 sq.ft facility in the outskirts of Bengaluru. The new CRM manufacturing facility. that employs over 400 people, has a production capacity of 3,000 machines per month.
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Rustom Irani, Managing Director, Hitachi Payment Services, said many Indian banks were in the process of replacing cash dispensers and cash depositors with cash recycling machines. “At present, banks are offering multiple boxes: ATMs to dispense cash and cash depositors for people to deposit cash. The irony is that, when an ATM faces dry runs, the box sitting next to it may be full of cash. A CRM can make this cash recycle, without requiring to replenish, making huge savings for banks.’‘
According to Mr. Irani, CRMs offer banks significant cost advantages in terms of cost of operating and managing multiple machines simultaneously and security and cash carrying cost. involved, in addition to significantly reducing downtime involved in cash dispensing via ATMs.\
“Most Indian banks are expected to move the CRM way now. The country has around 2,54,000 ATMs, as per the Reserve Bank of India, and all these ATMs can potentially become CRMs in a phased manner,’‘ he added.
Hitachi claims to be the global leader in CRM manufacturing and installation, while NCR, OKI and Hyosung are the others in the landscape.
As many as 28,000 CRMs are installed by Hitachi Payment Services in India. In total, in India, there are approximately 55,000 CRMs.