ATM: Did you also face a problem in withdrawing cash from ATMs? If this company goes bankrupt then the risk may increase..
Is there no money coming out of the ATM in your locality? Don't be surprised. The closure of an ATM service provider is causing problems across India. AGS Transact Technologies, the company that runs and refills ATMs across the country, has shut down.
The result is that ATMs of many major banks are running out of cash. But why did this happen? What will happen next? Let's know in detail:
What happened?
According to Moneycontrol, many ICICI ATMs ran out of cash in February. This happened when the employees of AGS Transact Technologies refused to refill the ATM in protest against not getting a salary for months.
The company promoted by Ravi Goyal was on the verge of closure at that time. Then last week the company announced that it and its units had defaulted on paying liabilities of Rs 3859 lakh. The company and its unit SecureValue India Ltd (SVI) defaulted on payments for borrowings of Rs 2123 lakh. The company and SecureValue India owe a total of Rs 7.19 billion to their creditors, including State Bank of India and Axis Bank.
AGS Transact Technologies is facing financial crisis
The company is facing a financial crisis, due to which agencies like Crisil and India Ratings have downgraded its credit rating. All its 4 independent directors have resigned due to personal reasons.
Lack of cash in ATMs of big banks
Now, according to ET, this has resulted in many banks like State Bank of India and ICICI Bank facing problems in servicing about 38,000 ATMs, which are short of cash. SBI has 14,000 ATMs affected, out of which 7,000 to 8,000 ATMs are managed by AGS Transact. At the same time, about 5,000 ATMs of Axis Bank are managed by AGS Transact. According to Outlook Money, 1,000 ATMs of India Post and 500 ATMs of Yes Bank have been affected.
What happens next?
AGS Transact is facing insolvency proceedings. ET reported that Maxwell Aircon India, a creditor of the company, plans to file a bankruptcy claim for alleged outstanding money.
Disclaimer: This content has been sourced and edited from Amar Ujala. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
