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Complete Guide to starting a Bank ATM franchise

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With the large majority of the Indian population depending on ATMs to withdraw money daily, it does make sense to venture into the ATM franchise in India since it can help one earn a monthly income while doing almost nothing. You might be up for it but have next to no idea how to get started with the ATM machine business in India, and that’s exactly why this article exists. In this article, you’ll learn all the necessary steps to set up an ATM machine Franchise in India. 

Did you know?ATM penetration in India is just 22 ATMs per one lakh of the Indian population.

What are White Label ATMs:

In India, there is a need for banking and ATM services to reach rural, semi-urban and remote places. It is a great business opportunity to set up a White Label ATM in the banking sector in such circumstances. So, what is a White Label ATM? ATMs normally have the bank’s names to vend cash and provide relevant services. For example, Bank of Baroda, ICICI, SBI, UCO Bank, etc. 

The white label ATM is not bank-issued and hence does not bear a bank’s logo. In 2012, RBI issued the White Label ATM guidelines followed by the necessary permissions and licenses. According to this guideline, a non-bank legal entity with a net worth over ₹100 Cr can set up these white label ATMs.

Tata Communications Payment Solutions Limited won the first permission to open such white label ATMs with the brand “Indicash” as its name. About fifteen such companies were also permitted to start white label ATMs. Some of the popular white-label brands of ATMs are the Muthoot Finance ATMs, AGS ATMs, and Prizm Payments ATMs.

Why start a White Label ATM?

Starting a while label, ATM can prove to be fruitful for both customers and the service provider, such as:

  • The customers benefit as all banks cards are accepted at the ATM.
  • White label ATM users are permitted a maximum withdrawal of ₹10,000 in a transaction.
  • Such ATM business in India also provides services and value-add-ons like utility bill payments, mobile recharge facilities, etc.
  • They also benefit the bank by providing cash and services, thereby reducing its branch operations and expenditure.

There are presently 100 ATMs for every 10 lakh persons of the Indian population, which is considered an extremely low figure compared to global figures. Therefore, the white label ATMs is expected to provide better ATM penetration in India.

Also Read: Cash Basis Accounting

Advantages of using ATMs

  • An ATM offers an easy way to access your bank account without intermediaries.
  • ATMs are located all over India in rural, semi-urban and urban areas.
  • You can use any Debit cum ATM card from any bank to transact at the ATM, which does not levy any charges for its use. However, all banks charge the customer’s account an ATM fee after three cash transactions per month.
  • The ATM accepts all credit/ debit cards issued by Indian and foreign banks like MasterCard, Maestro, Credit Cards, VISA cards, RuPay, Cirrus and VISA Electron cards.
  • ATMs can also read UPI and JCB cards without any problems. 
  • Several reliable bank ATM suppliers such as TATA Indicash, India One, Muthoot etc., install the ATMs

Now without further ado, let’s dig into the entire process of starting an ATM machine business in India:

Applying for a bank franchise in India

1. Firstly, choose your location. 

2. Next, get a bank franchise offer. Most banks use their official website to process franchise offers. You can also use the Indicash website, which you can use to know which banks to approach for an India ATM franchise tie-up arrangement.

3. Have your ATM installed by reputed ATM companies like Muthoot, Indicash or India One. Their website addresses are 

  • Tata Indicash – www.indicash.co.in
  • Muthoot ATM – www.muthootatm.com/suggest-atm.html
  • India One ATM – india1atm.in/rent-your-space

4. Start earning from day one.

The ATM franchise India franchise offer has specific requirements briefly detailed here. 

  • There should be no other bank ATM within 100 m of your ATM’s location. As per the regulations
  • You should be able to guarantee at least a transaction capacity of 300 transactions or more per day. 
  • The ATM must be housed in a 50 to 80 sq ft of commercial space.
  • The ATM needs to have a concrete roof to ensure its safety.
  • The ATM space needs to have excellent visibility and be on the ground floor of the premises.
  • The electrical connection should have at least a 1KW rating and have a 24 hours uninterrupted power supply. 
  • The V-Sat installation used for the ATMs functioning will need a NOC or No Objection Certificate from the owner, authorities or/and society as applicable.

What is the investment required?

The ATM franchise offer requires low investment if you can provide the ATM space. A reputed bank generally requires a refundable deposit of 2 to 3 Lakhs. For example, the SBI accepts a franchise fee of ₹2 Lacs/-. Therefore, the working capital needed may be between 3 to 4 Lacs. This earning opportunity provides you with a steady monthly income of anything between ₹25,000 and ₹90,000, depending on the ATMs location and its number of transactions daily. 

As for how you’ll earn through the ATM, you’ll get paid a small ATM commission by the bank (For example, the Muthoot ATM franchise commission); you’ll receive ₹8 per cash transaction and ₹2 for every transaction that does not involve cash or the non-cash transactions. This includes checking your account’s balance, getting a mini-statement of your account etc. 

Suppose the minimum transactions are 250 to 300 transactions per day. Then 35% of these could be considered non-cash transactions, and 65% of these transactions can be regarded as cash transactions of depositing or withdrawing cash. The expected ROI is in the range of 33% to 50% when calculated on an annual basis. This means you’ll earn at least ₹45,000 per month after reviewing  ATM Performance. If you look for it, you’ll see that many entrepreneurs make around ₹90,000 by ensuring they get a minimum transaction of 500 transactions/ day. 

What documents will you need?

You will need certain documentation when applying for an ATM franchise, and those include:-

  • Acceptable Address Proof like the Electricity Bill, Ration Card, etc.
  • ID Proof like the PAN, Aadhaar or Voter Card. 
  • Your Bank passbook and account details.
  • A valid email ID and a registered phone number.
  • At least 4 passport-size photographs. 
  • Your GST Registration and GST Number.
  • Financial documents like Balance Sheet, Profit and Loss Account, etc., for businesses that prove your net worth and business skills.

ATM franchise offers of different Banks

  • Indicash ATM business franchise offers:

The TATA Indicash ATM franchise can help you earn money, start your own business, use your space, and even provide you with an alternate employment opportunity if you are quitting your job. It is a profitable venture where you can easily earn ₹45K to 90K a month. So, how do you apply for this franchise offer?

The bank franchise offer typically does not include its ATMs. Instead, banks use reputed ATM companies with their WLAN networks to piggyback their banking and financial services. Such companies install, service, and train the franchise on the ATMs operations, normal glitches, service and maintenance options, etc. The bank provides the ATM company access to its networked ATMs through the WLAN network. 

Use the TATA Indiacash’s website (www.indicash.co.in) to apply online for the ATM franchise offers. TATA is a reputable and well-established ATM brand. It is perhaps the oldest and most reliable ATM installation partner for the banks and their banking services through ATMs franchise offers. The total Tata Indicash ATM franchise investment is approximately ₹5 lakhs, of which ₹2 lakhs is a refundable deposit held by SBI and includes working capital of ₹3 lakhs. You can view the Indicash offer on its official website: https://indicash.co.in/contact-us/atm-franchise/ or contact their telephone number 1800 2662 660. Once they receive your query, their representatives contact you regarding your business ideas and requirements.

  • Muthoot ATM installation franchise for banks:

The Muthoot ATM franchise opportunity is available across Indian locations and is a great way to earn anywhere from ₹30,000 to ₹90,000 per month, depending on the number of transactions a day. In other words, a great location with more footfalls earns you more money. Setting up the ATM just outside a bank, near bus or train stations, outside large offices, etc., is a great idea as it increases the number of transactions and footfalls per day. 

Muthoot Finance is a reputed NBFC company that believes in financial inclusion and is well-known, especially in South India, for its gold loans. It’s WLAN ATM presence in India has a strong network of over 4400 ATMs and covers semi-urban, urban and rural locations. Their WLANs are available pan India meaning their ATMs have hardly any downtime. The added benefit of quick response and service periods makes it one of the best ATMs to consider in a bank’s ATM franchise offer.

Here are the important features of this franchise offer.

  • Easy operations and installation.
  • Reliable after-sales service of the ATM with short downtimes.
  • An excellent earning opportunity of 25K to 90K per month!
  • Long term profit on a low investment.
  • All bank cards are accepted for transactions, including RuPay, Visa, MasterCard, and Maestro cards.
  • The ATM does not levy any charges on its customers.
  • PIN change, Mini Statement (10 transactions) etc., facilities are also available.
  • Voice recognition and Biometric recognition are available for customers who prefer this mode for whatever reason.
  • User friendly with voice prompts to empower the challenged and disabled.
  • Tata Communications Payment Solutions:

TCPSL ATMs are specialists in payment solutions for private ATM machine business in India in the B2C and B2B segments. They provide the latest in payments technology. Their clients are reputed Private banks, PSU banks, Cooperative banks, financial institutions and MNC banks. They have been offering such franchise offers since 2018 and require an investment of ₹2 lakh. Their royalty fee can range between a per annum charge of ₹1 to 2 Lacs. 

  • Hitachi Money Spot ATM:

Hitachi Money Spot ATM is similar to the TATA Indicash and Muthoot ATMs. However, Hitachi’s ATM brand is among the white-labelled NBFCs authorised by RBI for private ATM franchise installations in Tier-3 to 6 cities of India. Founded in 2004, the Hitachi franchise offers for their ATMs have been around since 2015. The expected royalty is ₹1 to 2 lacs per annum against a franchise fee of ₹ 2 lakh for the ATM franchise in Tamilnadu.

  • Private ATMs and Vending Machines:

Private Vending Machines are similar to the ATM franchise business franchise offers and provide entrepreneurs with a great home-based business. You do not require any special skills or prior experience. Such vending machines are widely used in the Food and Beverage industry, where automated vending machines dispense milk, water, snacks, pizzas, sanitary pads, coffee, beverages and more.

Also Read: All You Need To Know About Cash Deposit Slip


Having gone through this article, you may realise that getting started with a Bank ATM franchise in India is easy. But if you wish to make it a reliable source of passive income, you’ll have to put effort and implement strategies. We’ve covered every detail that’d help you develop an excellent strategy in this article, and we hope it helps you make your ATM machine franchise a successful venture. Hope you found this article insightful. For more such articles, follow Legal Tree for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.


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