AGS Transact Technologies faces insolvency due to alleged unpaid financial dues
Large Indian payment processor AGS Transact Technologies, with control over 32,000 ATMs, is at the moment financially under trouble. AGS has been unable to service loans worth ₹71.6 crore and deferred statutory dues like provident fund contribution and paychecks for the workers.
These financial issues have resulted in operational disruptions, with staff halting ATM services because of unpaid salaries, affecting customers of large banks such as ICICI Bank, Yes Bank, and Axis Bank. In addition, AGS Transact’s GST registrations across different states have been prohibited or cancelled, threatening the financial stability of the company.
As a reaction to these issues, credit rating companies Crisil and India Ratings downgraded the bank loans of AGS Transact to default level. AGS Transact’s auditors also filed an unfavorable report after the third quarter of FY25, questioning management’s application of the going concern basis for the preparation of accounts. Indiaratings.co.in
The resignations of all four independent directors in February 2025 have further exacerbated the problem, causing concerns regarding corporate governance. AGS Transact seems to be addressing these issues by reinstating its GST registrations and taking remedial steps to stabilise its operations.
