Have you been Googling around for business that can produce passive income? Are you a full time employee or a businessman looking for a side hustle, which may provide an income of ₹50,000 to ₹60,000 per month? Or, Did extensive research or news articles lead you to Franchise Goal India, the only source for trusted and transparent franchise database in India?
Congratulations! You have made it. If you have answered “yes” for any of the query, you should be curious to understand more about the ATM Franchise business that had created an uninterrupted source for passive income for several Indians.
In this article, we’ll guide you through the process of owning a SBI ATM Franchise, along with its costs, application procedure, and profit margin – and answer some of the commonly asked question on this chain.
- Brand: State Bank of India
- Founded: 1955
- HQ: Maharashtra, India
- Founder: Government-entity
- Revenue: ₹473,378.14 crore
- Deposit Fee: ₹2 lakh
- Area Required: 50-80 for ATM
- Earning Potential: Over 50,000 P.M.
- Total Initial Investment : ₹ 5 lakhs
Table of Contents
What is SBI ATM Franchise?
We all use ATM for our cash transactions and sometimes deposits over the years, but have you ever wondered who installs it? Do you think it was installed by the same bank? You may need to recheck. Interestingly, the banks doesn’t installs, rather choose to outsource it.
Today, we’ll understand more about SBI ATM, An ATM Franchise of India’s leading and largest public sector banks, which has an extensive network of ATMs across the country and a few at international locations. Usually, The State Bank of India has a contract with a few renowned White Label ATM Operators, namely Tata Indicash, Muthoot ATM, and India One ATM to install an SBI ATM in India.
While one might speculate about the physical ATM’s are declining as we see a continuous rise of the digital payments and online banking. But, that is not the case. More or less, the ATMs in India is growing and has evolved its technology to a certain level. According to the Indicash report, only 22 ATMs are available per lac population, ultimately, we see a high demand and growth prospects in India.
Currently, SBI, the largest Indian Bank that hold over 25% of market share, proudly serves over 45 Crore customers through its wide network of over 22,000 branches, 62617 ATMs/ADWMs, 71,968 BC(Business Correspondents – Comment down, if you don’t know about it and want us to cover in our article) outlets.
So, if you are looking for a business opportunity with minimum investment that may provide an impressive return and low risk, you should definitely consider reading this complete article.
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Key Facts on SBI and its ATMs
|1||Trade Name||State Bank Of India|
|2||Industry||Banking and Financial services|
|3||Founded||1 July 1955|
|4||Key People||Dinesh Kumar Khara(Chairman)|
|5||Corporate Headquarters||Maharashtra, India|
|6||Number of locations||22,000 branches, |
through White Label Operators
What are the White Label ATM Operators?
Successfully owning and maintaining a ATMs in India may be a crucial and tedious task, which requires several authorization and operations. However, In order to overcome these issues, Reserve Bank of India has authorized a few non-banking entities to setup and run these ATMs in India.
Additionally, These ATMs don’t bear branding of any specific banks and are open for use by customers of multiple banks, and hence called “White Label ATMs”. The entities which operates these ATMs are referred to as White Label ATM Operators (WLAOs). In short, WLAO should meet the certain conditions to become an authorized ATM operators;
- Should be registered under the Companies Act, 2013
- Minimum net worth of ₹100 crore as per the audited balance sheet of the preceding financial year.
- Satisfactory track record and be in compliance with regulatory requirements
- and more
List of an approved White Label ATM Operators in India
- Tata Communications Payment Solutions Limited (TCPSL) or popular as TATA Indicash
- Hitachi Payment Services Pvt. Ltd.
- BTI Payments Pvt. Ltd.
- Muthoot Finance Limited
- Vakrangee Limited
- Electronic Payment and Services (P) Ltd.
- AGS Transact Technologies Ltd.
- Prizm Payment Services Pvt. Ltd.
- FIS Payments (India) Pvt. Ltd.
- SREI Infrastructure Finance Limited
List of an approved ATM Operators in India for SBI Bank
- TATA Indicash
- Muthoot ATM
- India One ATM
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What are the SBI ATM Franchise Requirements?
Starting an ATM Franchise usually requires a minimal investment and offers a decent return within a few months of its establishment. For more info about its eligibility and requirements, please read further;
- Interested prospects should be financially well-qualified to invest a minimum of ₹5 lacs to manage and operate the ATM’s daily operations.
- The ATM Franchise aspirants should have at least 60-80 sq feet of commercial space in high visibility locations with proper electricity supply and Air conditioners(AC).
- Interested franchisees should have a passion to work in the Banking and Financial industry and should possess an entrepreneurial spirit to grow the SBI ATM business with complete ownership.
- The SBI ATM business owner is expected to be personally sound and should possess strong business credentials.
- The ATM location should be at least 100m away from other ATMs.
Documents required for SBI ATM Franchise
Irrefutably, for setting up a SBI ATM in your area requires a number of documents and verifications;
- Identity and Address Proof:
- Aadhar Card
- Pan Card
- Electricity Bills
- Landlord agreement for rental space
- Proprietorship/Partnership/LLP Documents
- Business/Trade Name
- GST Certificate and GST Number
- Bank Account Details
- Security Deposit
- Demand Draft for ₹5 lac refundable deposit
It is worthy to mention that, upon submission of above documents to the official, you may need to wait for at least 2-4 weeks to get a verification call/email from the vendor.
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Benefits of Owning a SBI ATM Franchise
Owning a profitable franchise like SBI ATM may prove beneficial to its franchisee. We have highlighted a few key features of it;
- Low startup cost and high profit margin:
- Starting a SBI ATM requires a low investment of ₹5 lakhs that may provide a consistent return of over ₹50,000 per month, making it a highly lucrative opportunity.
- Established Brand Name and enormous customer base:
- SBI indeed is one of India’s leading banking system with market share of over 25%, ultimately leading to an enormous customer base and higher probability of ATM transactions.
- Tremendous Growth Opportunities:
- According to White label operator’s survey, there is only 22 ATM available per lakh population in India, eventually creating more space for new entrants in the market with huge growth potential.
How Much Does A SBI ATM Franchise Cost?
Undoubtedly, Starting an ATM Franchise requires a minimal investment. However, the initial setup cost may depend on several factors, including the location, market potential, available floor area, and much more. Nevertheless, to become an approved SBI ATM Franchise owner, one may only require an investment of ₹5 lakhs with a floor area of 50-60 sq feet.
Additionally, the initial setup cost doesn’t cover the construction cost.
How much is the SBI ATM Franchise Profit Margin?
The income potential for a SBI ATM outlet owner may vary depending on the factors, such as location, average transaction performed, locality, market potential, and many more. However, it is worthwhile to note that applicant must choose a location near high footfall area, such as, college, universities, city center, supermarkets, and more.
The entire profit break up goes like this, The franchisee receives ₹8 for every cash transaction and ₹2 for non-cash transactions like balance checks and fund transfers.
How much does SBI ATM Franchise owner make?
The net profit margin may vary depending on the type of commercial space available(better, if self owned), location, and number of transaction performed daily. To elaborate more, lets walk through an example;
Example: Total Number of ATM Transaction performed daily: 500; out of which 350 is Cash and remaining 150 are non-cash transactions;
|Type of Cost||Cost and Other Details|
|Number of Daily transactions||500|
|Gross Earning: Monthly||====|
|Cash Transactions(350*₹8*30 days)||₹84,000|
|Non- Cash Transactions(150*₹2*30 days)||₹9000|
|Total Monthly Gross Earning||₹93,000|
So, ultimately with a better location and cost-efficient operation, one may anticipate a profit margin of ₹50,000 or more per month.
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How to Get SBI ATM Franchise?
Starting a SBI ATM Machine Franchise will require a relatively low investment that may offer an impressive gross margin. Additionally, the SBI ATM chain may provide several benefits, and interested candidates can take up its outlets in their city through their expertise and endless support systems.
One can avail this franchise using below mentioned steps;
- To start a SBI ATM Chain, one has to contact any approved White Line operators, such as Tata Indicash, Muthoot ATM, and India One ATM.
- Visit its official website and navigate to the franchising window;
- Fill in the details like Name, Email ID, Phone number, city, state, postal code, and other necessary info.
- Visit its official website and navigate to the franchising window;
|Apply here||Tata Indicash Franchising page|
In order to avoid any mischievous or fraudulent activities, Applicants are advised to be cautious and only submit their application through the official website or channel.
Final Takeaway – Conclusion
State bank of India is one of India’s largest and well-established banking systems, that is often termed as backbone of the Indian financial body. The chain indeed has an enormous customer base with over 25% of market share and over 22,000 branches, 62617 ATMs/ADWMs, 71,968 BC outlets.
Usually, SBI doesn’t directly offers franchise for its ATM operations rather choose to collaborate with renowned financial systems like Tata Indicash, Muthoot ATM, and India One ATM. These bodies have signed contract with SBI to install its ATMs in India at several locations.
To become an approved franchise, one has to investment at least ₹5 lacs( ₹2 lacs as security deposit and other ₹ 3 lacs utilized as working capital). Interested applicants are advised to secure a suitable space of 50-80 sq feet in high visibility and high footfall area. In terms of profit margin, an applicant may anticipate an earning of over ₹50,000 per month.
The Final Thought – Overall, SBI ATM Franchise is lucrative and profitable opportunity for aspiring entrepreneurs looking to venture into a financial sector. With number of future expansion planned and low investment with high earning profitability, there is ultimately a huge growth potential for everyone. So, Be cautions, while you apply!
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How much does it cost to Start a SBI ATM Franchise?
Ans: The total initial setup requires an initial investment of ₹5 lakhs which may include ₹ 2 lakh as a security deposit and remaining ₹ 3 lakhs will be utilized for daily working capital. A Franchisee is also expect to secure a proper space of at least 50-80 sq ft to install an ATM Machine.
Is SBI ATM Franchise Profitable?
Ans: Absolutely, Yes. With an investment of ₹ 5 lakhs, low required floor area, relatively cheaper working capital, and high growth potential with the impressive profit margin, SBI ATM chain owner is all set to acquire a significant market share and lead a successful entrepreneurial journey.