P Srinivas, a TCS official engaged with SBI ATM Scientific Security Management Services agency, was killed at the ATM near Arts college in the city, they said.
The agency is the main office which sends money to various ATMs across the district and keeps the remaining money in office.
After attacking the official by sprinkling red chilly powder, the unknown miscreants killed him and fled with the money, police said.
Investigations are on and a manhunt has been launched to nab the assailants, they added.