Cash logistics companies push
The proposal by the Currency Cycle Association (CCA), representing cash logistics and cash management companies, comes amid Prime Minister Narendra Modi’s appeal for fuel conservation in view of high crude oil prices linked to the ongoing conflict in West Asia.
The association has written to the Indian Banks Association indicating a sharp increase in operating costs and proposed that ATM replenishment frequency should be linked to “actual cash withdrawal patterns and transaction velocity” rather than following a uniform loading cycle.
Under the proposed model, high-footfall ATMs would continue to be serviced as needed, while low-velocity machines could shift to alternate day or demand-based replenishment cycles.
CCA general secretary US Paliwal said, “Every cash van on the road burns fuel. As an industry based on movement, we believe we have both a responsibility and a real opportunity to engage with the PM’s appeal to reduce fuel consumption.”
The association said manpower and transportation form a major part of the industry’s expenses and estimated that higher fuel costs and wage revisions could increase costs by 15-20 per cent in the near term.
In its communication to banks, CCA said it is actively exploring operational efficiency measures without compromising ATM uptime and public cash availability. It said the industry is committed to working with banks and stakeholders to ensure “resilient, efficient and sustainable cash management operations across the country”.
CMS Info Systems, SIS Prosegur, Brinks India, Radiant Cash Management Services, Sequel Logistics, SIS Cash Services, Writer Safeguard and Logicash Solutions are among the members of CCA.
Separately, the association has written to the Indian Banks Association noting a sharp increase in operating costs across the sector.
Paliwal said that “by moving low-speed ATMs to a planned, demand-based replenishment cycle, we can avoid road trips, save fuel and run fewer operations, without compromising the availability of cash for the public.”
The association stressed that ATM availability would remain a “non-negotiable guardrail” under the proposed model, and said the exercise was aimed at route optimization rather than service reduction.
In the letter, the association said, “Due to the current geopolitical developments and volatility in global crude markets, fuel prices have increased and are continuing to rise, which is having a direct impact on cash van movements and route operating expenses.”
It also highlighted “increases in legal, insurance, technology and compliance-related expenses, as well as significant minimum wage increases in several key states”, which it said have materially increased the region’s overall operating cost base.
The industry body pointed to minimum wage hikes in states like Haryana and Uttar Pradesh. Haryana has increased the minimum wages for unskilled workers by nearly 35 percent to Rs 15,220 per month, while Uttar Pradesh has increased wages by nearly 21 percent to Rs 13,690.
“Efficiency measures such as demand-led replenishment will help, but they cannot compensate for cost overruns of this scale. Further absorption is no longer sustainable, and timely pricing realignment with our banking partners is now essential,” Paliwal said.
