Even as India's ATM industry struggles to cope with the rising cost of tightened compliance requirements aimed at boosting security standards, manufacturers expect demand for new machines meeting the latest regulatory norms to go up in the country.

The Confederation of ATM Industry, or CATMi, which represents ATM manufacturing and outsourcing firms among other stakeholders, has warned that half of existing ATMs may be forced to close down across India by March due to growing compliance costs.

Currently, India has approximately 2.38 million ATMs, of which nearly half are expected to shut down on account of recent regulatory guidelines for ATM hardware and software upgrades, among other factors, V. Balasubramanian, director of CATMi, said in a statement last week.