Cash handling companies seek more for ATM refills

MUMBAI: Cash logistics companies, which replenish ATMs, have approached banks seeking measures to offset a sharp rise in operating costs, warning that a combination of fuel inflation, wage hikes and compliance expenses could push industry costs up by 15-20% in the near term. An increase in fees is likely to require a revision in ATM interchange charges that banks pay to other banks for customers using off network ATMs.

In a representation to the Indian Banks' Association, the Currency Cycle Association said that the sector is facing "significant increase in operating costs" driven by external factors affecting day-to-day operations across the country.

"Fuel prices have increased and continue elevating due to prevailing geopolitical developments and volatility in global crude markets, directly impacting cash van movement and route operating expenses," the association said. The body's members include CMS Info Systems, SIS Prosegur, Brink's India, Radiant Cash Management Services, Sequel Logistics, SIS Cash Services, Writer Safeguard and Logicash Solutions.

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