Vinita Khar
Director Sales at CMS Info Systems
It’s an intriguing question with answers all around us, yet one we rarely stop to ponder. Behind the scenes, the cash logistics industry ensures the seamless movement of money, handling approximately ₹15,000 crore daily and creating about 50,000 jobs across India.
Despite its critical role, this industry operates in relative obscurity, with limited information available online. Dominated by 4–5 key players, it works closely with banks to manage cash flow efficiently.
What Does the Cash Logistics Industry Do?
• Cash Transportation: Moving cash between currency chests and bank branches.
• ATM Replenishment: Ensuring ATMs are stocked and operational.
• Retail Cash Logistics: Collecting and depositing cash from retail businesses.
On a deeper look, we see that cash logistics companies facilitate every stage of the cash cycle, balancing demand and supply to keep the economy running smoothly.
An Everyday Example
Picture this: I woke up in a panic, realizing I hadn’t finished my Diwali shopping. After making a quick shopping list, I rushed to an ATM to withdraw cash for my purchases. With cash in hand, I visited various stores, bought everything I needed, and returned home satisfied.
But behind this simple sequence, the cash logistics industry was hard at work: Replenishing the ATM so I could withdraw cash. Collecting the cash I paid at the stores and depositing it back into the retailers’ bank accounts.
The Industry's Vital Role
As long as cash remains in circulation and a preferred mode of transaction, the cash logistics industry will continue to thrive. It plays a silent yet indispensable role in ensuring that money moves where it is needed, powering our daily lives and the broader economy.
Future Perspectives: A Digital Shift
While cash still plays a critical role, the payment landscape is evolving rapidly. Consider these
figures*:
• The share of cash payments in India’s private consumption expenditure (PFCE) fell from 80.6% in 2021 to 51.9% in Q1 2024.
• Digital payments surged from 19.4% to 48.1% during the same period.
The rise of UPI has transformed how we transact, marking a significant shift toward digital modes of payment. While cash remains relevant, the growing adoption of digital payments presents both challenges and opportunities for the cash logistics industry.
As we navigate this transformation, one thing remains clear: whether physical or digital, the
movement of money is central to powering economies. The next time you withdraw cash or pay for a purchase, take a moment to appreciate the complex systems at work behind the scenes that make it all possible.
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