How to get an ATM installed on your property?

An ATM installation provides a good opportunity for property owners to generate rental income. The ATM machine network has seen considerable growth in India, as these machines become a preferred and convenient mode for cash withdrawals and other banking services. Further, ATM installation has become more important in the banking system, with 355 million new customers being added to the system since 2014.

According to the Reserve Bank of India (RBI), there has been a 23%-25% year-on-year growth in the number of ATMs being installed across India, with their deployment predominantly seen in tier-1 and tier-2 cities. With the expansion of the ATM network, more ATMs would be installed.

Automated teller machines (ATMs) allow a bank account holder to withdraw cash using these cash dispensing machines 24/7. Branded as ‘any time money’, ATMs are crucial for the growth of any banking system in the world. To expand their network and facilitate ease of doing business, banks install off-site ATMs, opening an investment avenue for the common man.


ATM installation


Prerequisites for ATM installation franchise

Here are three points one should keep in mind before applying for an ATM installation on commercial property:

  1. It should be a commercial property at a strategic location, measuring 60 to 80 sq ft.
  2. One should have at least Rs 5 lakhs of savings, to invest (this includes Rs 2 lakhs refundable deposit and Rs 3 lakhs investment to manage and undertake the daily ATM operations).
  3. One should have sound personal, as well as business credentials.


ATM machine installation: Types of ATMs

To rent your commercial property for an ATM installation, you should have a clear understanding of the types of ATMs in India. There are primarily three types of ATMs.

1. Bank-owned ATMs

ATMs that are owned, operated and maintained by a bank itself are called bank-owned ATMs. These ATMs are categorised as on-site and off-site ATMs. An on-site ATM is located along with a bank branch, while off-site ATMs are installed at important places with heavy footfalls, such as airports, railway and bus stations, educational institutes, hospitals and shopping malls.

Running and maintaining an ATM is a costly affair. It might require a monthly expense of Rs 30,000 to Rs 50,000 to run an ATM, depending on its location. This means a bank needs a minimum of 90 to 100 transactions per day to make THE ATM operations viable.

2. Brown label ATMs

Brown label ATMs are owned by banks but they are operated by a third party. In brown label ATM installation, the third-party owns the hardware of an ATM machine and ensures its smooth functioning by roping in all utilities. It is also responsible for identifying the location for the ATM installation and create a lease agreement with landlords. The bank, on the other hand, is responsible for cash management and provides connectivity for its banking network. Brown label ATMs operate similar to the ones belonging to the bank. The ATM machine bears its logo.

3. White label ATMs

ATMs owned and operated by non-banking financial companies (NBFCs) are called white label ATMs or WLAs. Non-banking ATM operators are authorised under the Payment and Settlement Systems Act, 2007 by the RBI. The rationale to allow non-banking entities to set up WLAs is to increase the geographical spread of the ATMs for increased/enhanced customer service, especially in semi-urban and rural areas.


How many white label ATM providers are there in India?

After the RBI gave its permission for non-banking entities to operate ATMs in India, there were eight mega WLATM players in India. However, presently there are six players:

  • Tata Communications Payment Solutions (the largest player with 8,290 ATMs)
  • BTI Payments (6,249 ATMs)
  • Vakrangee (4,506 ATMs)
  • Hitachi Payment Services (3,535 ATMs)
  • RiddiSiddhi Bullions (681 ATMs)
  • AGS Transact (119 ATMs)

Note: SREI Infrastructure and Muthoot Finance used to be ATM operators but now have exited the business after they became ‘financially unviable’ post the Coronavirus pandemic.

See also: Difference between HFC and bank: Which lender should you opt for?


How to apply for ATM machine installation on your commercial property

Let us understand the process to apply for an ATM installation on commercial property. Banks often advertise about the need for commercial properties to run ATMs. One should keep an eye on such advertisements.

  1. If you want a bank to operate its ATM on the property, get in touch with the bank.
  2. If possible, get in touch with operators of white label ATMs to run its ATM on your property.
  3. Similarly, get in touch with the third-party operator to apply for a brown label ATM on the property.

You can fill the application online through the website of banks or you can meet the bank officials. Once the bank, NBFC or the third-party operator considers your proposal and runs a viability check on the proposal, it may approve your request to install an ATM on your property.


Sample application for ATM machine installation

Here is the template you can consider, for sending your application to the bank or the NBFC, when applying for an ATM installation on your property.


The Manager

Name of the Bank



Subject: Proposal to rent a property for ATM installation


Dear sir/madam,

This is to state that I wish to lease my property as the site for an ATM installation for your bank. With this intent, I hereby share my personal details and details of the property that I intend to lease for the said purpose.


Name of the applicant:

Address of the applicant:

Phone number of the applicant:

E-mail ID of the applicant:

Address of the property to be leased:

Area in sq ft:

Year of construction:

Distance from the main road:

Distance from nearby AMTs, if any:

Proposed rental charges:

Proposed security deposit:


I also declare that the property is free from any encumbrances and I have also received no-objection certificates from the authorities concerned, to get an ATM installed at the site. I am also attaching the photographs of the proposed site for the ATM installation in my application for your perusal. I request you to consider my application for the same.



Name of the applicant:


Signature of the applicant:

Mobile number of the applicant:


Details you must mention in your application for ATM installation:

When writing an application for an ATM installation on your commercial property, you will have to clearly state the following details:

  1. Location centre, city, pin-code
  2. Address
  3. Floor and carpet area in sq ft
  4. Frontage in running feet
  5. Commercial usage approval and other approvals on hand
  6. Expected rent per sq ft on the carpet area
  7. Contact number/e-mail ID
  8. Photos of the site


Investment for ATM installation on your property

As mentioned earlier, the bank will ask for a security deposit between Rs 2 lakh and 3 lakhs. This money will be refunded at the completion of the lease term. If you are not able to honour the completion of the agreement, the bank will deduct money from the security deposit. You will also be responsible to bear the cost of site maintenance.


How much rent can you get by installing an ATM on your commercial property?

There is no fixed rent that you earn by leasing your property to be used as an ATM site. The amount of rent you will be able to generate from the ATM site, depends on the footfall the system receives. This means that your rental income will be directly proportional to the number of daily transactions on the ATM. Considering the footfall is decent, you will be able to get anywhere between Rs 50 per sq ft and Rs 200 per sq ft per month. In an average scenario, your rental income could be anywhere between Rs 25,000 to Rs 50,000 per month.


Things to remember before applying for ATM installation

* A bank or an ATM operator will accept your application for an ATM installation, only if the site falls in a busy area. They will also consider your proposal favourably, if the site has no ATMs nearby.

* Your property should be free from any encumbrances. You must possess all the property documents for the bank/NBFC to approve your request for an ATM installation.



What is an Automated Teller Machine (ATM)?

An ATM is a computerised machine that provides banks’ customers the facility to access their accounts for dispensing cash and to carry out financial and non-financial transactions, without having to visit the branch.

Is there any difference in the facilities being provided at a bank ATM and a white label ATM?

A white label ATM functions like any other bank ATM.

Are white label ATMs allowed to display the third-party advertising in their ATM premises?

Yes, unlike bank ATMs, white label ATMs are allowed to display third-party advertising in their premises.

How many ATMs are in India?

A total of 2,34,244 ATMs were present in India as on September 30, 2020. According to official data, there is one ATM per 10 villages in India. There are 6,50,000 villages in the country.


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